I have not worked for two years and am supported by my husband. If he claims me as a dependent, can he be held responsible for my tax debt?
There are two filing statuses available to married couples: married filing jointly and married filing separately. In most cases, it is more tax efficient to file jointly. Spouses aren’t claimed as dependents due to the filing statuses for married taxpayers. When married filing jointly, despite any disproportionate earnings between spouses, both spouses are generally held liable for the tax due on that particular return. If there are extenuating circumstances -- such as intentional failure to report income on one spouse’s side or legal separation -- there may be relief available. The IRS provides three types of relief: innocent spouse relief, separation of liability relief, and equitable relief. If you choose married filing separately, you are each only responsible for the tax liability on the return that you each file. It is important to note that there are some filing requirements that must be followed when married filing separately, and generally it results in unfavorable tax treatment.
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Answered by: Ashley N. Blessing, CPA, is a supervisor with Herbein + Company Inc. in Reading, Pa.