Tax Intercept for Unpaid Child Support

[Dogmatique]

That sounds like that's exactly what happened.

All it takes is one party who knows a bit about withholding.

[Lawrence084]

You guys lost me here. To do what you were talking about earlier, the couple would have to file separately, yes?

In this case if a joint return is filed the injured spouse can only claim their contribution. So it doesn't make sense why they get back the entire refund. No money is owed to the state. Only secured judgement is the child support, which is being enforced with the intercept.

A married couple can do what I stated eariler and file Jointly or seperately. The number to claim is done before the tax year so the accounting department know what percentage of taxes should be taken out of each paycheck.

For example: You can go to your H.R. department sometime before 2012 and increase the number you are claiming now, so next year your paycheck will be higher, but your tax refund will be smaller. Or decrease the number you are claiming and your paycheck will be smaller but you tax refund will be higher.

Married couples file jointly because there are benefits by doing it. What I mention is how you can change the amount of your paycheck and tax refund you will recieve. Some people don't want a tax refund, so they claim more. and the benefits to them is they are able to put the extra money in stocks or saving accounts and gain interest, (It can add up over a 12 month period year after year) and it prevents anyone from garnishing their tax refund, because there is none. Downside is if you miss calculate by claiming too much, you may end up owing taxes, or the tax % change ect.... The safe way is to claim yourself, which most people do, and recieve a tax refund.

This is how you may know someone who making less or the same amount as you, but their paychecks are higher.

Let me know if you still don't understand...

[ph_dudley]

Your ex's current wife completed an injured spouse claim to the IRS and it is the IRS that makes the determination what portion is attributed to her. In this case it appears that your ex had little to no income so it was all attibuted to his current wife and that is why the IRS recalled it. Remember your ex's current wife does not have a legal obligation for your ex's child support. This will probably happen in the years to come.

[distressedmom]

I get that part and understand the injured spouse claim. What I don't get is how all of it belongs to the injured spouse. We are talking about a significant refund of over 4 grand.

[Dogmatique]

We're trying to explain that.

It's possible to have your employer adjust your withholding so that you end up paying much less in taxes during the year, hence you would be entitled to no refund come tax time. So even if they file jointly any refund would be due the other spouse.

[distressedmom]

Update and question.

So I just find out from the court clerk that they gave the NCP credit for the full amount of the the tax intercept against the arrears. The only problem is that I never got the money! Court clerk is saying I have to go back to FL DOR to set things right.

There as a notice of delinquency filed with the court. No one has assessed interest against the arrears. They can't get it right. They just can't get it right.

[llworking]

You guys lost me here. To do what you were talking about earlier, the couple would have to file separately, yes?

In this case if a joint return is filed the injured spouse can only claim their contribution. So it doesn't make sense why they get back the entire refund. No money is owed to the state. Only secured judgement is the child support, which is being enforced with the intercept.

No...it doesn't work that way. An injured spouse form (not innocent spouse) is a form used to determine what portion of the refund was due to the person having debt, and what portion of the refund was due to the injured spouse. Quite often the entire refund is due to the tax attributes of the injured spouse, and therefore the injured spouse receives the entire refund.

[EA1070a]

No, what she is saying (I believe) is that her ex received full credit from child support services against his outstanding arrears balance even though the money was returned to her ex and never received by distressedmom.

You need a hearing for a judicial determination of arrears and at the hearing ask the judge to order that interest be included for the amount owed from the date of delinquency. They have to redo the whole thing in their system and it will take time.

Make sure you have proof that you never received the money they're crediting him with paying through the intercept.

[slk1974]

This is all very interesting and helpful to my wife and I.Now I know to figure the witholdings on our paychecks so my wife can receive a higher amount along with the child tax credit for our children,instead of my ex,regardless she is still getting money anyway from my paycheck. BTW before anyone get's all upset,I am the CP now and for the past 4 years they have still been taking my returns to pay down my arrears(no where near $22,00,yikes!) although my child has been living with us,while my ex receives support for the past 3yrs. Michigan drags their feet when it comes to straightening out CS.Because in actuality she should be paying me.But I owe so whatever,they're not trying to hurry in any way.

[horseyjess]

I get that part and understand the injured spouse claim. What I don't get is how all of it belongs to the injured spouse. We are talking about a significant refund of over 4 grand.

Its easy, if my DH and I file together. He does owe an arrerage. Right now he has no income. In the past he claims married with 2 dependents. I have 2 children from a previous marriage, I also own our home, but I owned it before me met. We also have one child together. IF I were to file with him this year. His only income was about 4000 in unemployment. I would claim all of my income and withholdings (I with hold married but hold at the single rate). I would claim the home taxes and interest as my own. Also all three children as my dependents. All of the refund therefore is mine. I still dont go this way we file seperate. As I make to much income to get an earned income credit and the IRS and intercept can hold my tax money up. I need that as a savings account so I am not going to ever do that injured spouse form.