Injured Spouse Claim

[jilly]

My DH is paying child support for two children (different BMs). His CS is taken out of his paycheck bi-weekly. CS for his son was increased in August 2003 so of course that created an arrearage. Also, because of the increase, BM for his son is now getting a higher percentage of CS paid in, which means that his ex is getting a smaller cut, which has created an arrearage there.
I've been working on our taxes and trying to figure out whether to file jointly and include an injured spouse claim with the tax return or if it would be better to file separately. We have a 20 month old daughter and I'm claiming her on my taxes. I know that I can get the child tax credit for her but when because my DH and I live together I can't take the credit for child care expenses if I file separately. That makes absolutely no sense to me! And, because we live together, I can't even claim head of household, which would allow me to take the child care expenses credit and give me a bigger refund.
It is my understanding that filing an injured spouse claim is no guarantee and that it is in their discretion to take either half or all of any refund due when an injured spouse claim is filed.
Has anybody had any experience with this where you filed jointly with an injured spouse claim and they still took the entire refund? What did you do? Does anybody know if there's a way for me to be able to take the child care expense credit and/or file head of househould? Or should I just talk to a tax advisor?
Thanks for your help!
Jill

[VeronicaGia]

Every time I've filed an Injured spouse form, I've received a refund.

You have to fill it out properly.  Do not let the IRS figure it out or they will figure everything half-and-half.  However, if you have less to deduct, your refund will be less, and if you don't work, it might not make a difference.

[jilly]

Thanks for your response.   I do have the form and the instructions for filling it out so I'll make sure to fill it out properly. I do work full-time so I don't know if that's a blessing or a curse!  I think there is instructions/worksheet where you can figure the amount of the injured spouse refund even though the IRS figures that amount. Guess it's a way to doublecheck their work!

[oneandonly]

and using a tax preparer....there is NO WAY in heck skanky is getting any of my hard earned cash~

[oneandonly]

and using a tax preparer....there is NO WAY in heck skanky is getting any of my hard earned cash~

[jilly]

Yeah...I know how you feel.  Unfortunately after looking at our options, we're going to have to file jointly. We'll end up owing a little over $900 for federal but getting almost $600 back from state. But....since he's in arrears to both PB's (yes I have the pleasure of having TWO PB's! LOL)we won't even see a dime of that money. Totally pisses me off...GRRRRRR.  Problem is, if we file separately, then he ends up having to pay over $2,000 for federal and only getting $15 back from the state.  (Although I would LOVE for THAT amount to be split between the two! LOL)  DH is adamant he's not going to take a big tax hit just to keep the PBs from getting our tax refund so guess I'm just going to bite the bullet on this one.  This may be a bad thing to say but I would've been better off (financially) not marrying him! LOL
Oh well...as Scarlett O'Hara said...Tomorrow's another day!