In marriage, we often share many aspects of our lives with our partners — our home, finances, dreams, and sometimes, even debts we didn’t personally incur. One area where this becomes especially tricky is tax debt. If your husband owes back taxes, you may be wondering whether the Internal Revenue Service (IRS) will eventually come after you as well.
The short answer is, ultimately, it comes down to how you filed your taxes. If you both filed jointly, you may be fully liable for your spouse’s tax obligation. However, if you filed separately, then you’re not required to bear that liability.
Need to secure immediate tax relief? Victory Tax Lawyers offers experienced legal guidance to help you protect your finances. Request a free consultation or explore your options with an IRS payment plan lawyer.
In this article, we’ll walk you through when and why you may be liable for your spouse’s tax bill, how your filing status affects your tax liability, and how to request relief if you feel you are not responsible for the tax debt incurred.
How Does a Tax Liability in Marriage Work?
Married couples have two options to choose from when filing their tax returns: Married Filing Jointly or Married Filing Separately. The way spouses file their tax return determines how much of their partner’s tax issues might become theirs.
If you choose the married and filing jointly status, you’ll both be required to report all your income, expenses, deductions, and credits on one single joint return. Under the IRS rule, when couples report their income on one tax return, the IRS categorizes them as a single taxable entity.
If, on the other hand, you choose to file separately (married but filing separately), the divide between you and your spouse is drawn. In other words, the IRS treats you both as single individuals, only liable for the taxes related to your own income and deductions. This, however, comes at its own cost. Filing separately disqualifies you both from enjoying certain tax benefits, such as the Earned Income Credit, Child Tax Credit, or education-related deductions.
Joint vs. Separate Filing: What It Really Means
If both spouses file jointly, they become jointly and severally liable for the debt (including taxes, penalties, and interest) even if only one spouse earned the income. This is the IRS’s way of saying that both spouses become equally and fully responsible for any taxes owed.
This implies that the IRS can extend its collection rights to either spouse, depending on who is financially capable of paying the tax debt. They can seize your joint refunds, garnish wages, or issue levies and federal tax liens, even if the tax issue started before you were married. The interesting thing is, even a divorce does not negate this arrangement. It continues to hold sway until one of the parties takes action to seek tax relief.
While most couples file jointly, some choose to file separately. Especially when one spouse owes taxes and questionable deductions. If you choose to file separately, you are only responsible for your own share of tax liabilities. This arrangement essentially protects you from being legally responsible for whatever past due amounts you didn’t personally incur.
The point is that under joint filing rules, your spouse is no different from you in the eyes of the IRS. If they’re owing tax debt, you’re owing tax debt. It’s worse if their debt has already triggered collection actions. Collection actions can escalate quickly and are hard to reverse without professional support.
Still not sure if you could be liable for your spouse’s debt? Then you need to hire a tax attorney. As complicated as it may seem, Victory Tax Lawyers can help you understand your rights, asses the situation and protect your financial future.
Are You Liable for Your Husband’s Back Taxes?
Whether you’re liable or not depends on how you filed your taxes, when the debt was incurred, and what relief options may apply to your situation. We’ve explained in detail just below to determine whether or not you’re liable for your partner’s back taxes:
1. What Was the Filing Status?
Simply, if you filed using the married filing jointly option, then you’re both liable for any tax debt that needs to be paid. As we already mentioned, under joint filing, you both agree to combine your income, deductions, and credits.
So, essentially, you agree to be taxed as one person. This is called joint and several liability, and it means the IRS can pursue either of you for the entire amount owed. If, however, you filed separately, then you’re generally responsible just for your own tax responsibility.
2. When Was the Tax Debt Incurred?
Timing is another critical factor. When was the debt incurred? Was it before or after the marriage? If it was before you got married, then you qualify for Injured or Innocent Spouse Relief and can apply for these relief options if the IRS comes after you.
If the debt arose during the marriage, your liability depends again on whether you filed jointly or separately that year. Even if you were separated or divorced and had no involvement in the finances, if you had filed jointly, it can still make you liable.
Luckily, there are relief programs you may qualify for if you’re able to prove you were separated or divorced, or can show that it was a case of fraud or financial abuse, and you had nothing to do with it.
3. Did You File in a Community Property State?
In community property states, couples have equal rights to all the income and assets acquired during the marriage. What this means is that if you happen to live in a community property state, whether you filed jointly or not, you just might be responsible for your spouse’s unpaid taxes because half of any community income is treated as yours.
The only exception when you’re considered to have separate property and, hence, not subject to community property rules is when the income is coming from a property owned by one of you before marriage or was received as a gift or inheritance during the marriage.
How Can the IRS Collect From Spouses
The IRS has an array of enforcement tools it uses to pursue tax debts. Here are the most common collection tactics they employ:
1. Wage Garnishment
When the IRS garnishes your wages, it withholds a portion of your paycheck (including fees, commissions, bonuses and similar items) monthly until you make other arrangements to pay your debt. In many cases, by the time they’ve finished deducting the levy, you’re left with very little. Luckily, wage garnishment can be stopped. Not sure how? Speak with our tax professionals today.
2. Tax Refund Offsets
If you’re due a federal or state tax refund, the IRS can apply it toward your spouse’s outstanding tax bill if you both chose the ‘married filing jointly’ tax filing status. This is automatically processed through the Treasury Offset Program. Because it’s automatic, you may not even discover that your refunds have been used until they’re completely gone. If your portion of the refund has been wrongly applied to your spouse’s tax liability, you can apply for Injured Spouse Relief, which may help you reclaim it.
3. Bank Levies and Property Liens
The IRS can levy (i.e, freeze and seize) funds from joint bank accounts or place liens on assets that you both share, including your home, cars, or business property, if you have a tax debt you haven’t made payment arrangements for.
4. Community Property State Considerations
States like California, Texas, Arizona, Nevada, Idaho, Louisiana, New Mexico, Washington, and Wisconsin follow community property laws. In these states, both partners have shared responsibility for income earned and debts taken on while married. It does not matter if one partner brought in all the income or spent it.
If you operate in any of these regions, then understand that the IRS can pursue your joint earnings, assets, or tax refunds if it considers it necessary.
IRS Relief Programs for Innocent Spouses
Shared finance sometimes implies shared consequences. Here are some relief options you can apply for if your spouse has unpaid taxes and you’re being held down for it:
Innocent Spouse Relief
You can apply to the IRS to request Innocent Spouse Relief. This relief option relieves you of the burden of paying additional taxes if your partner had underreported their taxes due on your joint tax return and you weren’t aware of the errors. Errors that cause understated taxes include unreported income, incorrect deductions or credits, and incorrectly valued assets.
This relief only applies to taxes owed on your partner’s income from employment or self-employment. Therefore, you cannot exercise the relief on taxes due on:
- Your own income
- Household employment taxes
- Individual Shared Responsibility payments
- Business taxes
- Trust fund recovery penalties for employment taxes
- What it is and how to qualify
- Situations where this applies (e.g., fraud, unreported income)
To qualify for innocent spouse relief, you must have filed a joint return with your spouse, your joint return must have been understated due to an error attributable to your partner, and the error must have been unknown to you as of the time of signing the return, therefore making it unfair and unreasonable to hold you liable for the understatement. You can request innocent spouse relief using Form 8857, Request for Innocent Spouse Relief.
Injured Spouse Relief
If your federal tax refund was used to pay your spouse’s tax debt, you can apply for the injured spouse relief. This relief helps you reclaim the portion of your refund that was used to cover the debt.
Tax debts for which refunds are commonly used to pay off include debts owed to federal agencies such as the IRS, past-due child support, state tax debts, and state unemployment compensation debts. You may be eligible for injured spouse relief if you filed jointly with your spouse, you had your tax refund applied to your spouse’s delinquent tax debt, and you weren’t responsible for the debt.
To apply, you want to make sure you file Form 8379 (Injured Spouse Allocation) within three years from the date the return was filed or two years from the date the tax was paid, whichever is later. If you didn’t file a return, you must file within two years of the date the tax was paid.
Separation of Liability Relief
Even after a separation or divorce, the IRS still considers you jointly and severally liable for the total tax debt of your former spouse. The divorce doesn’t automatically cancel out the implication of a joint filing status.
One of the ways you can get a tax break from this responsibility is to secure the separation of liability relief. Under this relief, the IRS divides tax debt between you and your former (or legally separated) spouse based on your respective shares of income, deductions, and credits.
The result is that at the end of the day, you are only held responsible for the portion of tax attributable to you. This relief is generally available to you if you:
- Filed a joint return with the spouse who had incurred the tax bill.
- You are now legally separated, divorced, or not living together for at least 12 continuous months with the spouse with whom you filed your joint return. It also applies to those who are widowed.
- You were unaware of the understatement or error at the time the joint return was signed.
- You can show that holding you jointly liable for your spouse’s portion would be unjust.
When you apply for innocent spouse relief, the IRS automatically applies this relief to you if you’re eligible. This means you don’t have to request it separately once you have filed Form 8857.
Equitable Relief
Equitable Relief is the IRS’s “last resort” solution for taxpayers who don’t qualify for Innocent Spouse or Separation of Liability relief. This relief allows the IRS to waive the responsibility of paying your spouse’s understated or underpaid taxes on your joint return, particularly when it feels it’s unfair to hold you responsible for the entire debt.
Equitable relief typically applies to taxes due on your spouse’s income and assets and not yours. You may qualify if:
- You filed a joint return with your spouse
- You don’t qualify for Innocent Spouse or Separation of Liability Relief.
- You can show that, under the facts and circumstances, holding you liable would be unfair (e.g, you’re facing financial hardship, you’re facing mental and physical health issues, etc).
- You didn’t know and benefit from the underpayment or understated income.
You become ineligible for relief in any year you signed an Offer in Compromise with the IRS. You also will not qualify if you signed a closing agreement with the IRS about the same taxes, a court made a final ruling denying you relief, or you were involved in a related court proceeding and didn’t ask for relief.
As we mentioned, when you file Form 8857, it not only covers innocent spouse relief, but it also covers equitable relief and separation of liability. You don’t need to determine which type of relief best suits your situation. The IRS will review all of your information and provide the applicable relief if you qualify for any.
What to Do if You’re at Tax Risk
If you’re currently under pressure because your husband’s debt is causing the IRS to be on your tail, then it’s time to get professional help. With the IRS, the longer you delay, the fewer options you may have that put you in an advantageous spot. Here are some things you can do:
Consult a Tax Professional
This right here is perhaps the most important step you can take whenever you’re faced with a legal dilemma. Whether you’re trying to avoid joint liability, protect your refund, or stop a wage garnishment, a tax professional can help you understand your exposure, identify the right relief option for you, negotiate terms with the IRS on your behalf, build and submit a strong case representative of your situation, and ensures you’re getting the best bargain from the legal chips placed on the table.
Communicate With the IRS
Your tax debt or the consequences of having one, whether personally incurred or incidentally incurred by your spouse, do not somehow go away at the end of the day. You have to take proactive measures to resolve it. From the first IRS notice, you should be on your toes, trying to make sure it doesn’t escalate.
A lot of taxpayers ignore their first few IRS letters or notices. Don’t be like them. Responding early, before collection actions are triggered, opens the door to more lenient options like payment plans or penalty abatement.
Review and Adjust Filing Strategies
You just may want to sit down and consider the long-term implications of your preferred filing status. No one plans to separate or get a divorce, but sometimes the married filing separately option may just be the best if your spouse has unresolved tax issues or you’re both not financially aligned. Think it through because while it does have its perks, it may mean sacrificing some credits along the way. But at least, it can protect your finances.
Additionally, you want to maintain clear financial records, including who earned what and who owns which assets. If there’s ever a need to provide such documentation, having it handy could save you stress and missed opportunities. Finally, make sure you don’t sign any returns you haven’t fully reviewed. You’re legally accountable for what’s on it and could just be incurring a liability by doing so.
Need Help Navigating Back Taxes and Spousal Liability?
Married couples get the option of choosing between two filing statuses. Filing jointly often means shared liability, even if you didn’t earn the income. On the other hand, filing separately means losing some tax credits here and there, but having to take responsibility for only the tax liabilities that apply to you.
If you’re currently bearing the brunt of your decision to file jointly, you need to act fast, as the IRS wouldn’t hesitate to use the tools in its arsenal to collect what it’s owed, such as wage garnishments, levies, or refund seizures. One of the measures to take could be applying for relief if you qualify for it.
Luckily, our tax attorneys at Victory Tax Lawyers have never lost a battle with the IRS. Whether it’s joint liability, garnished wages, or back taxes tied to your spouse, we have the best tax attorneys ready to bring expert legal firepower to protect what’s yours. Don’t wait, contact us now at absolutely no cost.
FAQ
Can the IRS Take My Refund if My Husband Owes Back Taxes?
Yes. If you filed a joint return, the IRS can use your shared tax refund to liquidate your husband’s tax debt through the Treasury Offset Program. However, you may be able to recover your portion by filing Form 8379 – Injured Spouse Allocation.
Can I Be Held Responsible for Taxes if We’re Separated?
Yes. If you filed a joint return, you can still be held responsible, even if you are no longer living together. Being separated does not automatically protect you from shared tax liability unless you make that clear by seeking relief.
How Long Does the IRS Have to Collect Taxes?
The IRS generally has 10 years from the date the tax was assessed to collect a tax debt. This is called the Collection Statute Expiration Date. However, this period can be extended under certain conditions, such as bankruptcy or submitting an Offer in Compromise or a payment plan.
What Happens When You Marry Someone Who Owes Back Taxes?
You don’t automatically become liable just because your husband owes the IRS. Your filing status largely determines your liability. Did you file separately? Yes? Then you’re off the hook. Did you file jointly? If yes, you may already be implicated. You should speak to your attorney if you’re looking for ways to limit your exposure.
