HOLY CRAPPIN CRAPPITY CRAPPOLA !! IRS

[Aerovette]

As many of you know, my wife moved out a while back and we are now divorced, however, going in to 2017, we were still legally married. She lost EVERYTHING in hurricane Harvey and took out a hardship withdrawal from her 401k...with NO tax withheld. Nothing that was lost was covered by insurance so she took out the money and paid for all of it that had a balance and bought replacement stuff.

So I am doing our taxes and if I was single going in to the year, I'd get about 1900.00 back. Together, we owe $5964.00...THEN you add in her 401k withdrawal and we owe $22,068.00 !!!

Yeah, I'd love to say "sucks being you" but that tax owed is BOTH of ours. Doesn't matter if she moved out or not.

[MrPeabody]

Can't the loss from the hurricane be written off?

[Aerovette]

Originally Posted by MrPeabody

Can't the loss from the hurricane be written off?

She is looking in to that. My...her sister in law asked a tax consultant about it and they said no, but sometimes you have to know how to ask the question or what question to ask.


Now that I say that, maybe I should take care of this.

[Sea Six]

I am never getting married.


EVER!!!!!!!!

[Stangkiller]

Originally Posted by MrPeabody

Can't the loss from the hurricane be written off?

Yes there’s an itemized decuction for catastrophic loss, but it’s not a great one. Limited to a sudden unusual loss or theft over 10%agi plus $100. This just reduces your taxable income not directly taxes owed

https://www.google.com/amp/s/amp.usa...om/amp/1674479

[Black94lt1]

Damn man, at least take heart that you will be a lot better off next year!

[Jeff '79]

I got $34 dolla back...

And the hits keep comin'.
That really sucks man.

[longhorn341]

Umm... what am I missing here? If you were divorced in 2017, you would file single. Your marital status on the last day of year determines filing status.

[Hoog]

Originally Posted by longhorn341

Umm... what am I missing here? If you were divorced in 2017, you would file single. Your marital status on the last day of year determines filing status.

This ^^^


Who's telling you have any responsibility to her tax liability? You're single, you file single and tell her good luck.

[bsmith]

Originally Posted by longhorn341

Umm... what am I missing here? If you were divorced in 2017, you would file single. Your marital status on the last day of year determines filing status.

I'd cross my fingers that the above is correct...

But if they were still married when she took that 401k withdrawal, would he still be responsible for it?
Sounds like she screwed him one last time.

[Ol Timer]

As a Google certified tax expert, it appears the code clearly states that your filing status is determined by your marital status on the last day of the filing year - as stated above.

Further, retirement plans are not joint assets unless declared so by a legal decree.

[Mike Mercury]

[Aerovette]

Originally Posted by Ol' Timer

As a Google certified tax expert, it appears the code clearly states that your filing status is determined by your marital status on the last day of the filing year - as stated above.

Further, retirement plans are not joint assets unless declared so by a legal decree.

Ok, I was initially told it was status as of the FIRST of the tax year, 1/1/17, which means married status. This morning I am seeing that it is the last of the tax year, 12/31/17, which would allow me to file single.

I need to find ABSOLUTE clarification that is above interpretation.

In addition, she was already moved out for over a year when she took the withdrawal, but it was a few months before the divorce. In addition, the decree gives me a portion of the 401k which would seem to make it a shared asset my decree as well as Texas community property rules.

I'd be THRILLED to know this is her problem and I will actually get a refund.

[Cybercowboy]

The decree gives you a portion of her 401k? And then she took out a big chunk of it? How can this be your problem then? You need to hire an accountant that knows something.

[Aerovette]

Originally Posted by Cybercowboy

The decree gives you a portion of her 401k? And then she took out a big chunk of it? How can this be your problem then? You need to hire an accountant that knows something.

For the sake of discussion...

She had 100k (I don't actually know what is currently in it)
She asks for a divorce
I am owed a portion of the 401k
Before I have received anything, she withdrew funds.

The amount owed to me is still there.

I had the foresight to NOT accept a percentage of the balance. Instead I requested a set dollar amount. If that set dollar amount leaves her with 50 cents, so be it.

Initially it was a percentage and would change with the market, or withdrawals etc. No way I was taking that risk. I probably gave up some money by doing what I did, but I feared a crash or that she would take it and leave me high and dry.

[Cybercowboy]

Originally Posted by aerovette

For the sake of discussion...

She had 100k (I don't actually know what is currently in it)
She asks for a divorce
I am owed a portion of the 401k
Before I have received anything, she withdrew funds.

The amount owed to me is still there.

I had the foresight to NOT accept a percentage of the balance. Instead I requested a set dollar amount. If that set dollar amount leaves her with 50 cents, so be it.

Initially it was a percentage and would change with the market, or withdrawals etc. No way I was taking that risk. I probably gave up some money by doing what I did, but I feared a crash or that she would take it and leave me high and dry.

Exactly. That has no bearing at all on your 2017 taxes if you were divorced prior to Jan 1, 2018. It does probably mean that if you ever want to see a cent of that you'll have to take her to court, or threaten to. Just a wild guess based on your previous statements about her.

[Aerovette]

Originally Posted by Cybercowboy

Exactly. That has no bearing at all on your 2017 taxes if you were divorced prior to Jan 1, 2018. It does probably mean that if you ever want to see a cent of that you'll have to take her to court, or threaten to. Just a wild guess based on your previous statements about her.

She has no choice. The paperwork gets submitted to the agent that does the disbursement and it gets handled without her involvement.

It is a mere pittance, but it is a start. I have ZERO retirement now since the intention was for hers to handle it all. My company has no 401k.

[Iron Chef]

Originally Posted by Sea Six

I am never getting married.


EVER AGAIN!!!!!!!!

Fixt to adjust for circumstances.

[tjfontaine]

Personally, I think you are fine. You should be able to file as a single. Just in case, maybe have a tax attorney do your taxes. These guys are not expensive not much more than H&R block really. I have had mine done by a local tax attorney as I have some sticky issues with one of the states I lived in and stock options. He does it all for 300 bucks - and, he is so confident in what he does for that amount he will defend me to the IRS if something comes up.

[bsmith]

Seems odd that you could claim file as single because the divorce was finalized in December.

If something horrible happened at any point in the year, one spouse could fall on the sword and get a quicky divorce to shield assets if that were true.

Hope it's correct for the OP, but it seems like it's ripe for abuse.