From: Houston, Texas

Dear TaxMama,

My soon to be ex-husband's accountant sucks. She has done our taxes and for some reason cannot help me out with this.

We are getting a refund check of approximately $2,500.00. We are presently separated and getting divorced. He has stiffed me for thousands of dollars - and I was going to get the whole $2,500.00.

When we filed the tax return, I found out there is a lien. That is for the $2,300.00 in back child support he hasn't paid me since we separated in February, 2005.

He had his accountant also get an extension until August instead of filing in April when we were supposed to file.

Anyway, in trying to figure out how they calculate what I am owed, I have looked over Internet and everywhere. I can't find where they calculate if I made regular income and paid taxes all year long last year and he owned his own business, paid no taxes, is that included in the consideration that the $2,500.00 is actually due to what I have paid the IRS throughout the year.

Should I not get all that back and he is totally stuck with his child support presently due?

Ticked in Texas

 

Dear Ticked,

Goodness, it looks like you're in a tough spot.

First of all, why are you still filing jointly with him? You don't trust him. He doesn't manage money well.

And now you've signed another tax return with him and are making yourself responsible for his taxes, if that return is ever audited. I suggest that you never do that again. But, that won't help you now - only in the future.

And I doubt very much that his accountant sucks. She seems to be doing a great job - for HIM. She's HIS accountant. Not yours. You should have someone on your side when you're in an adversarial relationship like this. You need someone to protect YOUR own interests. Yes, it will cost you an extra couple of hundred dollars, out of your own pocket - but it would have saved you a lot of money, time and trouble. You wouldn't be having this problem if you had someone who cared about you.

For now, though, is there some quick, easy way for you to figure out what part of that refund ought to be yours, aside from it being yours due to the child support anyway?

Actually, I've been thinking about a way to help you compute this yourself. And it's not easy.

Why?

If you simply take that tax return and compute it based on each of you filing as married, filing separately, (MFS) all the taxes will be higher and it won't give you a representative value for your share of the taxes or refund.

But, if you had filed on your own, since you did live together during all of 2004, that's the way you would have had to file. So, using this method might actually be the fairest.

And here's how you'd resolve the tax liability. Add up the total taxes for each of you under this method. Then divide your MFS taxes by the total. Use this percentage against the total tax liability on your joint 2004 tax return. That's your share of taxes.

Now, deduct that total from the taxes you had withheld from your paycheck. The difference will be your share of the refund.

Take a copy of your joint tax return and make two columns on a piece of paper - label one column HIS and the other MINE. List each of your incomes and expenses in the appropriate column.

If something is 'ours' split it 50-50.

Then using those numbers, use the tax estimator at TurboTax to figure out each of your taxes based on Married, Filing Separately.

Better yet, you really should have your own tax professional from now on. So find yourself a good local tax pro. Establish a long-term relationship. And have them help you through it for now.

There are so many more financial pitfalls during the rest of your divorce. Not having your own tax professional and financial advisor, there will be so many more nasty surprises. You can't even imagine the kinds of financial harm someone like me could do to someone's ex in a divorce.

You definitely need someone on your side!

Don't go it alone. Ask your divorced friends who they know that is good at taxes and divorce. If you can't find someone, let me know. I'll see if I can find someone good in Texas.

Best wishes,