Innocent Spouse Relief

When a couple files a joint tax return, both individuals are jointly responsible for any tax debt that arises, no matter the income each person individually contributed. This holds true even if your spouse or ex-spouse incorrectly reported income, leading the IRS to pursue either party for any resulting tax liabilities, including penalties and interest. This liability extends beyond divorce. However, you may be eligible for innocent spouse relief, which can exempt you from the responsibility for tax errors you were unaware of and did not endorse.

To qualify for innocent spouse relief under IRS guidelines, several criteria must be met:

The mistake on the joint tax form must be due entirely to your spouse's error.
When you signed the joint return, you were unaware of the mistake.
Considering all the details, making you liable for the tax error would be unjust.

Three types of relief for innocent spouses are available:

Classic Innocent Spouse Relief
This exempts you from having to pay any back taxes, penalties, and interest due to your spouse's or ex-spouse's omission of income.

Relief by Separation of Liability
This method allocates the tax owed and any penalties and interest between you and your spouse or ex-spouse.

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Only Divorcees Qualify

Relief is Rarely Granted

You Must Have No Knowledge

Relief Covers All Taxes

Professional Help Isn't Needed

Only Divorcees Qualify

Myth

Only divorced individuals qualify for innocent spouse relief.

Fact

Married individuals can also qualify for innocent spouse relief.

Relief is Rarely Granted

Myth

The IRS rarely grants innocent spouse relief.

Fact

With proper evidence, innocent spouse relief is often granted.

You Must Have No Knowledge

Myth

You must have no knowledge of the tax issue to qualify.

Fact

Even partial knowledge can still qualify you for relief under certain conditions.

Relief Covers All Taxes

Myth

Innocent spouse relief covers all types of taxes owed.

Fact

Relief typically applies only to certain liabilities and specific conditions.

Professional Help Isn't Needed

Myth

You can easily apply for innocent spouse relief without professional help.

Fact

Professional assistance can improve the chances of successfully obtaining relief.

Adult Day Care Coverage

Risk Factors

You may have to pay them for their services from your pocket if you hire a caregiver.

Solution

Policies may cover community care, which usually means adult day care, so you don’t need to pay them all by yourself.

Modifications to House Coverage

Risk Factors

You may need to build a wheelchair ramp for one of your family members because of their medical conditions.

Solution

Some policies may even pay benefits to family members who act as caregivers or cover home modifications, such as adding wheelchair ramps or installing safety devices.

Equitable Relief

If you don't qualify for the first two types, you might still be eligible for equitable relief, which can apply to both tax underpayments and inaccuracies.

For those who think they may qualify for innocent spouse relief and wish to pursue it, it is advisable to consult a tax specialist. They can assist you in navigating the process and protect your financial rights.