Difference Between Innocent Spouse Relief And Injured Spouse Relief

There are several primary differences between innocent spouse relief and injured spouse relief. An innocent spouse can get relief from the IRS when their spouse makes errors and false reports on a join tax return. On the other hand, an injured spouse is able to receive relief when the IRS holds a joint refund as a way of satisfying debts of their spouse. There are definite benefits to be aware of. While you may not qualify for one, there is a good chance that you could take full advantage of the other.

Injured Spouse Relief

If you believe that you qualify for injured spouse relief you need to follow the steps outlined by the IRS.

1. Make sure that you actually filed a joint return. If you did not, you are unable to use injured spouse relief as a way of bettering your situation.

2. Find out of the IRS has withheld a tax refund in the past, or plans to do so in the future, because your spouse has missed payments on items such as student loans or child support. If you are unsure of where you stand, do not hesitate to contact the IRS for further information on your account.

3. Download Form 8379 from the IRS website. This is the form that you need if you are going to apply for injured spouse relief.

4. On part two of the form, you will need to allocate all income, deductions, and credits between you and your spouse. This is the information that the IRS needs in order to give you the portion of the refund that you deserve.

5. Send the completed form to the IRS. You can send this along with your completed return, or separately if you have already filed.

Innocent Spouse Relief

Those who are requesting innocent spouse relief should follow these steps.

1. Did you file a joint return? This is the number one qualifier. If you didn't, you are unable to request innocent spouse relief.

2. Make sure that your spouse improperly and inaccurately reported items, which in turn led to an understatement.

3. Did you know that your spouse was including erroneous information when you signed the return? If so, you are not going to qualify for innocent spouse relief. Only those who were not aware of these intentional errors are eligible.

4. Download Form 8857 from the IRS website. This form needs to be completed and forwarded to the IRS immediately. Make sure you include honest, accurate information.

Hire a Professional

Even though it may seem cut and dry, there are times when you may be confused about whether you should file for innocent spouse relief or injured spouse relief. Rather than guess and hope you are right, hire a tax professional to answer your questions and guide you through the process.

All in all, there are several key differences between innocent spouse relief and injured spouse relief. Are you in position to take advantage of either one of these relief options?

Get A Va Home Loan With Bad Credit: The Difference Between Acceptance And Rejection

After serving your country as a member of the military, readjusting to life as a civilian can be rough. This is especially true for military members with bad credit who may need to find housing but fear that they have no options. Yet, there are lenders who are willing to grant special VA home loans that allow borrowers with bad credit the option of financing a home purchase with bad credit. This article will review the details of these loans and what one needs to do in order to qualify for one.

VA Loans: A History

The U.S. Department of Veterans Affairs, also known as the VA, was established before the country was even founded. Back in 1663, the Pilgrims of Plymouth actually passed a law which guaranteed that any soldier injured in battle with local Pequot Indians would be supported by the colony. Once the country was founded in 1776, those benefits continued and have subsequently expanded throughout the years in reaction to the many conflicts that U.S. armed service members have participated in.

The VA home loan program started following World War II. The idea was to provide a way for veterans and their families to secure housing and fulfill the American Dream of home ownership. The VA essentially insures the loan and gives veterans the advantage of their support when talking to lenders. In addition, should you fall behind on your mortgage payments, the VA can help you out as well, preserving your credit in the future.

Qualifying for a VA Home Loan

In order to qualify for and receive a VA-sponsored home loan, you do not need to be a first time home buyer. There are some other criteria that you need to meet, however. This includes:

- You must be a current or former member of the armed forces, a qualified National Guard or reservist or the surviving spouse of one.

- You must meet income and credit qualifications specified by the VA.

- The home you buy will need to serve as your primary residence.

The details of each lender's credit score qualifications vary. However, regardless of your credit score, income is a major factor in your loan determination, especially among those with bad credit. If you do not have a stable source of income that is large enough to support your mortgage payment along with other debt obligations you cannot qualify for a VA home loan, especially with bad credit.

Finding a VA Home Loan

Home loans that are sponsored by the VA are not offered through the VA itself, but rather through select private lenders who agree to submit to the VA's standards and operate through their rules. It is up to the individual lenders to choose whether or not to extend a loan to you, which includes an assessment of your bad credit score. However, it is important to note that the support of the VA will enhance your home loan application since it gives lenders an additional safety net should you fail to repay your loan properly.

Making the Decision to Buy a Home

Choosing to buy a home, whether through a VA home loan or a traditional home loan is one of the biggest choices of a person's life. There are many factors that go into the assessment for this type of loan which includes an evaluation of your bad credit. Therefore, any additional positives you can offer the lender, such as VA backing, is helpful and can ultimately make the difference between acceptance and rejection.