How should a divorced spouse handle IRS notice that indicates that the couple owe IRS $690 for 2016 taxes due to ridesharing carryover that was disallowed by IRS?
In November 2016, the married woman separated from her husband and filed for divorce. Husband and wife are legally divorced now since May of 2018. The ex-husband filed the 2016 taxes as MFJ without the wife's consent even though she was no longer leaving in the house. The wife is not aware whether the ex-husband received a refund or not.
Now, according to the IRS letter, a ridesharing carryover has been disallowed resulting in the couple owing IRS $690.
How should the wife handle this situation since she left the house in Nov 2016 and did not participate in the filing of the 2016 returns?. She has no knowledge of what was filed and the outcome of the returns.
Your professional advise would be much appreciated.
What exactly is a ridesharing carryover? Is this IRS, or a state issue?
Did the wife file her own MFS return in 2016? As @Just-Lisa-Now- points out, it's probably not worth contesting such a small amount with IRS. That's especially the case, if she can't explain why she didn't file her own return that year. But if other issues come up that require a trip back to divorce court, you can add this one to the docket.
Thank you Bob,
This is a state issue. Wife did not file MFS return when she learned the husband has filed MFJ. She did not want to add that headache given that the ex was not cooperating with the divorce proceedings.
Ridesharing I believe has to do with sharing ride with others to and from work. I am assuming the husband may not have been able to deduct all the credit from the previous yr.
I think both responses are good advice.
Thank you so much.
Ridesharing these days is a euphemism for Uber and Lyft, but there may have been a credit for car pools back then. Maybe it only applied to employers but the instructions were not clear. In any case, she might not have signed the joint return but not filing her own is evidence that she ratified it. Of course we all know that rules are suspended for people getting a divorce, because they are the only ones it has ever happened to.