Tax question
Jan 18th 2019, 3:44 pm
#1
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Tax question
Hi Group
Background: My fiancé (USC) who I’ll marry (UKC) within 2 weeks in US is unemployed (for a few years) due to a progressive illness. She has applied for disability however it’s a very long process I gather. She currently owes back taxes. I’ve been covering both US and UK expenses for both homes for about 12 months.
My questions ...
1. Could owing back taxes hamper CR-1 process? We’ll have a joint sponsor.
2. Will I be liable for her back taxes when we marry?
3. Will the money I’ve sent from UK to cover US bills be classed as income and thus be declared on her new tax return in US?
4. I’ve heard the IRS could put a lien on her home. How would that work? Would this essentially be a loan on top of existing mortgage that we’d pay or IRS recover funds when property is sold?
Many thanks
Background: My fiancé (USC) who I’ll marry (UKC) within 2 weeks in US is unemployed (for a few years) due to a progressive illness. She has applied for disability however it’s a very long process I gather. She currently owes back taxes. I’ve been covering both US and UK expenses for both homes for about 12 months.
My questions ...
1. Could owing back taxes hamper CR-1 process? We’ll have a joint sponsor.
2. Will I be liable for her back taxes when we marry?
3. Will the money I’ve sent from UK to cover US bills be classed as income and thus be declared on her new tax return in US?
4. I’ve heard the IRS could put a lien on her home. How would that work? Would this essentially be a loan on top of existing mortgage that we’d pay or IRS recover funds when property is sold?
Many thanks
Jan 18th 2019, 3:55 pm
#2
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Posts: 6,159
Re: Tax question
1. I don't think so. Not because of debt, and you do have a joint sponsor for living expenses?
2. No. But if you file married jointly any refund could be seized for back taxes.
3. No. If you were a US tax resident you'd be the one to pay taxes on gifts but sounds like you're not?
4. A lien would stop you selling the property until the lien is cleared.
If you are really concerned please talk to the IRS about a payment plan or something.
In the long run it's better to square with them and they have mechanisms for situations like this.
They're not that scary and you don't need these worries at this stage in your life.
2. No. But if you file married jointly any refund could be seized for back taxes.
3. No. If you were a US tax resident you'd be the one to pay taxes on gifts but sounds like you're not?
4. A lien would stop you selling the property until the lien is cleared.
If you are really concerned please talk to the IRS about a payment plan or something.
In the long run it's better to square with them and they have mechanisms for situations like this.
They're not that scary and you don't need these worries at this stage in your life.
Last edited by Hotscot; Jan 18th 2019 at 3:59 pm.
Jan 18th 2019, 4:04 pm
#3
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Re: Tax question
Thanks for the quick and clear reply.
Im all about paying debts promptly however some people not so much! I have discussed paying something but fell on deaf ears for now.
Im all about paying debts promptly however some people not so much! I have discussed paying something but fell on deaf ears for now.
Jan 18th 2019, 4:08 pm
#4
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Re: Tax question
Who did you discuss with? Someone in the IRS? (It's not easy to get someone knowledgeable if you're going through front line phone support.)
Have you looked at this?
https://www.irs.gov/payments/payment...ent-agreements
I'm from Airdrie by the way...
Have you looked at this?
https://www.irs.gov/payments/payment...ent-agreements
I'm from Airdrie by the way...
Jan 18th 2019, 8:46 pm
#5
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Re: Tax question
Additionally, it's slightly unusual to be owing taxes unless you have a business/self employed. (Or a tax return was inaccurate).
If directly employed the employer would normally handle occupational taxes.
If it was due to something other than that could you clarify?
Not looking for personal detail just an overview.
(I was also going to make sure that you had met your fiance in person. I see that you have
.)
If directly employed the employer would normally handle occupational taxes.
If it was due to something other than that could you clarify?
Not looking for personal detail just an overview.
(I was also going to make sure that you had met your fiance in person. I see that you have
.)
Last edited by Hotscot; Jan 18th 2019 at 9:15 pm.
Jan 18th 2019, 10:46 pm
#6
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Re: Tax question
Who did you discuss with? Someone in the IRS? (It's not easy to get someone knowledgeable if you're going through front line phone support.)
Have you looked at this?
https://www.irs.gov/payments/payment...ent-agreements
I'm from Airdrie by the way...
Have you looked at this?
https://www.irs.gov/payments/payment...ent-agreements
I'm from Airdrie by the way...
I discussed with my partner or tried anyway.
As my partner ended up unemployed, with ongoing medical issues she cashed out 401k and did not pay all the tax due. Not something I would have done but hey ho I guess I’ll (we’ll) need to fix it a some point in the future.
When paying 2 sets of bills it’s a good idea to check out liabilities so that’s the reason for my questions.
Thanks folks 😃
Jan 18th 2019, 10:49 pm
#7
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Jan 19th 2019, 12:16 am
#8
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Re: Tax question
Paisley...I've had a few kebabs there in my time..
I wish you well.
Shame about cashing out the 401K but I understand.
Be aware of this though...
Emergency Access to Your 401k: Hardship Withdrawals - 401khelpcenter.com
I wish you well.
Shame about cashing out the 401K but I understand.
Be aware of this though...
Emergency Access to Your 401k: Hardship Withdrawals - 401khelpcenter.com
Jan 19th 2019, 2:15 am
#9
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Re: Tax question
Shame about cashing out the 401K but I understand.
Be aware of this though...
Emergency Access to Your 401k: Hardship Withdrawals - 401khelpcenter.com
Be aware of this though...
Emergency Access to Your 401k: Hardship Withdrawals - 401khelpcenter.com
Jan 19th 2019, 1:49 pm
#10
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Re: Tax question
Of course. But it could help a little.
Depending.
Depending.
Jan 19th 2019, 3:08 pm
#11
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Location: NC, USA (ex Yorkshire)
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Re: Tax question
I would consult a tax attorney. If there is one agency you don't want to screw with, it's the IRS. They can practically do what they want.
Jan 19th 2019, 3:27 pm
#12
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Re: Tax question
The 401k is history so it’ll be damage limitation. I’m certain she has a lawyer for her finances and disability claim.
I don’t have the specifics as technically it’s not my business however that’s about to change through marriage I guess.
Thanks again.
I don’t have the specifics as technically it’s not my business however that’s about to change through marriage I guess.
Thanks again.
Jan 19th 2019, 3:29 pm
#13
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Re: Tax question
No need for an attorney and associated cost. The IRS are generally straightforward in my experience.
And what Alba outlines is nothing particularly unusual. They're unlikely to get in trouble.
A tax attorney will be glad to take your money to tell you the same thing though.
And what Alba outlines is nothing particularly unusual. They're unlikely to get in trouble.
A tax attorney will be glad to take your money to tell you the same thing though.
Last edited by Hotscot; Jan 19th 2019 at 3:31 pm.
Jan 19th 2019, 3:46 pm
#14
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Re: Tax question
No need for an attorney and associated cost. The IRS are generally straightforward in my experience.
And what Alba outlines is nothing particularly unusual. They're unlikely to get in trouble.
A tax attorney will be glad to take your money to tell you the same thing though.
And what Alba outlines is nothing particularly unusual. They're unlikely to get in trouble.
A tax attorney will be glad to take your money to tell you the same thing though.
Jan 19th 2019, 3:49 pm
#15
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Re: Tax question
Understood.
To each his own, but nothing he outlines raises any particular flags.
No-one has done anything wrong.
Of course if they use a tax professional, rather than software, as normal to file their taxes then business as usual.
To each his own, but nothing he outlines raises any particular flags.
No-one has done anything wrong.
Of course if they use a tax professional, rather than software, as normal to file their taxes then business as usual.
Last edited by Hotscot; Jan 19th 2019 at 4:22 pm.
