Amending Tax Returns

[jsr52]

I've just been made aware that you have 3 years to amend old tax returns. So let's say you and your spouse have student loan debt and decided it's better to file taxes separately. When you are done paying off loans or they are forgiven via PSLF, can you go back and amend your last 3 tax returns and change them to married filing jointly to get the tax credits you missed out on? I ask because my cousin recently did this and her father is a CPA and it didn't seem kosher to me.

[q-school]

i feel like those areas are where the cpa's know what can and can not be done.

it would never have occurred to me, and i understand what you are saying,  but i wouldn't begin to know more than a cpa in this area.

[Zaphod]

doesnt seem right. In my experience, no offense to the fine cpas on this forum, cpas are super comfortable with bending the rules to the point they are wrong.

[jfoxcpacfp]

jsr52 wrote:

I’ve just been made aware that you have 3 years to amend old tax returns. So let’s say you and your spouse have student loan debt and decided it’s better to file taxes separately. When you are done paying off loans or they are forgiven via PSLF, can you go back and amend your last 3 tax returns and change them to married filing jointly to get the tax credits you missed out on? I ask because my cousin recently did this and her father is a CPA and it didn’t seem kosher to me.

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Yes. The IRS allows you to amend tax returns from MFS to MFJ but not the other way around and it is kosher. Any guesses why?

[q-school]

i have no idea, but will guess something about your spouse is a louse and divorce or not paying taxes was a looming issue?  previous marriage commitments?  student loans?

 

[jfoxcpacfp]

q-school wrote:

i have no idea, but will guess something about your spouse is a louse and divorce or not paying taxes was a looming issue?  previous marriage commitments?  student loans?

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I wish you had carried out the poem to its conclusion - that c/h/b fun.

No, the IRS has a vested interest in keeping spouses on the hook for any taxes owed. You make the commitment to joint and several liability for the full tax bill when you sign your return. If you have already filed a joint return, you cannot detach from the responsibility. If you have filed separately, the IRS wants you to amend to file jointly.

[jsr52]

So if my spouse is paying off loans at a low IBR payment, and we are MFS to keep her payments low, after she gets PSLF, we can amend the last 3 years to MFJ and then would get any tax benefits we missed out on?

 

[jfoxcpacfp]

jsr52 wrote:

So if my spouse is paying off loans at a low IBR payment, and we are MFS to keep her payments low, after she gets PSLF, we can amend the last 3 years to MFJ and then would get any tax benefits we missed out on?

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1. Yes, you can amend and get a refund for any extra taxes you might have owed due to MFS.


2. I do not know if there are any negative implications afa the benefit you received via reduced loan payments. That's a separate issue that you weren't asking about, but thought I'd mention.

@Zaphod: no offense taken 

[jsr52]

Hard to imagine fedloan going back and seeing amended returns, I then wonder if returns can continually be amended throughout PSLF payments and not just the last three, anyone do this before? I'll have to talk to my CPA with respect to my situation, but thanks Johanna