Does Your Spouse Owe Child Support? Find Out How To Protect Your Taxes

Posted on: 6 August 2019

Are you married to someone who owes back child support? Did you file a married joint tax return only to discover that part of your refund was used to cover arrears? If so, you are likely feeling stressed out and panicked. Many people run into the same situation time and time again. Fortunately, there is hope. It is possible for you to retrieve your portion of the tax refund, but you need to understand what steps you must take.

Understanding the Offset Program

As it currently stands, there are over 13 million single moms and dads in the United States, and nearly half of them have a child support agreement with the biological parent of their child or children. Most of those agreements – approximately 89.8% - are formalized through a legal process. Legalized agreements are often upheld using the Federal Tax Refund Offset Program.

In other words, if a person fails to pay child support, a child support agency will submit the names and social security numbers of the children and the IRS will take the funds from a tax refund. Although it is a great way to ensure child support gets paid out, it can often have an impact on stepparents. Stepparents are not legally responsible for children, however, so there are standards in place to protect you.

Innocent Spouse Tax Relief

Before you panic about your missing portion of the tax refund, you should reach out to a professional. A tax resolution service can assist you in figuring out your best approach. Typically, an expert will recommend that you file an innocent spouse tax relief form. The IRS suggests filing Form 8857, which is the Request for Innocent Spouse Relief. Fortunately, filling out that form can protect you over the course of multiple years, so you do not have to file one each year.

Form 8857 must be submitted within 3 years from the date you filed the return. The IRS will review the form and work to repay you the portion of the refund to which you are entitled. Keep in mind that it can take time to have the money credited back to your account. However, there are guidelines in place that make it easy to get your money back in a timely manner, especially if you address the matter as soon as possible.

When the Department of Treasury takes the funds from a refund, they send it to the state that requested the offset. The state can hold the refund for up to six months if the money received came from a joint tax return. The reason for the hold is to allow someone like you to file an innocent spouse form so your money can be pulled from the offset and sent back to you before it is sent to the custodial parent.

Are Stepparents Ever Responsible for Child Support?

Each state recognizes that it is unfair to force a stepparent to contribute to the financial needs of a stepparent. If you choose to provide for your stepchild financially, that is entirely your decision, but it does not mean you are obligated to share the responsibility of covering child support payments. The only time a stepparent is liable for the financial wellbeing of a child is if you choose to adopt that child.

Stepparents who legally adopt their stepchildren will be bound by the same laws as they would be bound by with a biological child, which would require assisting with child support payments should that arise in the future. However, without a legal adoption in place, you are entitled to your full portion of a tax refund. Speak to an innocent spouse tax relief professional near you to find out more about what you can do to retrieve your portion of a tax refund.

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