mike_w
recently joined
Reged: 02/09/07
Posts: 6
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How this for getting screwed.
I am separated from my wife since May 2003. In New Jersey there is no “Legal Separation” so when I file my federal tax, my filing status has to be “married filing separately”. The problem with that is, if my wife itemizes, I am forced to itemize. I can’t claim the standard deduction.
I called the IRS info line and explained that we had lawyers draw up a “Property Settlement Agreement” and that we live completely separate lives. They say it doesn’t matter.
My options:
1. Lose over $1,000 each year, or
2. Start divorce proceedings and spend thousands not even knowing what the outcome will be.
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Miranda
Carpal \'Tunnel
Reged: 06/02/05
Posts: 20822
Loc: North of Mexico
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YOu have had 4 years to get the ball rolling and now you are just realizing your tax disadvantage?
The laws are the laws. Why would a divorce from a woman whom you have not lived with in 4 years cost thousands? You should have nothing to argue over. File for divorce and be done with it. It could cost less than 500.00 if you all agree to everything.
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13.1...because I am only half crazy!
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jaiye
old hand
Reged: 10/27/05
Posts: 860
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You can still file married/joint and just split the refund. I would think there would be advantages for both of you to file together. My uncle and his wife were seperated and filed seperate for 3 years until I pointed out they would both benefit from filing joint so they did and even went back and filed amended returns and all total I think they ended up getting back over $10,000 for the three years and just split it 50/50.
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mike_w
recently joined
Reged: 02/09/07
Posts: 6
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First of all, it's only 3 tax years we're talking about and in the first two her income was so low she claimed the standard deduction which allowed me to claim the standard deduction. This might be the first year she itemizes.
Second, Our separation was not established by a court, just through lawyers. This brings up two issuses. First, my child support might not fall within the guildlines, it might go up. And second, I foolishly agreed to pay all of the unpaid medical expences. Since then, my employee medical benifits have been reduced by more than half, and so to have the courts change that, it's going to require discovery and the whole nine yards, hence, lawyers, litigation, and thousands of dollars in legal fees.
My point is that this tax law stinks!
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mike_w
recently joined
Reged: 02/09/07
Posts: 6
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As to filing jointly, my wife would never do it because she does not want me to know anything about her life.
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matart1
Carpal \'Tunnel
Reged: 09/01/05
Posts: 2798
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you can look on the bright side of things - the longer you stay married, the higher chance you have of spliting all monies such as pensions equally, property and alimony.
the longer you stay married is only going to cause you long term problems.
if your separated this long - you are better off going through divorce.
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Life is a long lesson in humility.
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