Daily Archives: January 4, 2018

“Innocent Spouse Relief”

01_04_18_462235785_ftnp_560x292_1.jpgAn ex-wife gets no tax relief. In general, married taxpayers who file a joint tax return are “jointly and severally liable” for the tax due on the return. However, spouses may be eligible for “innocent spouse” relief if they can prove they didn’t know about an understatement of tax. In one case, a married couple filed a joint return and later divorced. The U.S. Tax Court ruled the ex-wife wasn’t entitled to innocent spouse relief with respect to two sources of income earned by the ex-husband because she was aware he had received 1099 forms. (TC Summ. Op. 2017-95)

When are education expenses deductible?

Education expenses may be deductible, but not if the education is needed as a minimum requirement of the taxpayer’s current job, or if it qualifies him or her for a new profession. In one case, a taxpayer was hired as a speech pathologist, but she didn’t have the required master’s degree. After obtaining that degree, she deducted the costs on her tax return, but the IRS disallowed the deductions. The U.S. Tax Court agreed, because the degree was needed to meet the minimum requirements of her job and also qualified her for a new profession. (TC Summary Op 2017-93)