How will the IRS treat a stimulus payment when there is an innocent spouse involved?
A. An innocent spouse determination for a 2007 income tax return would follow the filing of the return. In most instances, the stimulus payment will be issued before such a claim is filed and before a determination can be made. Q. My spouse and I have divorced and the stimulus payment check is made out to both of us. Can I cash it? A. If the check is made payable to both of you, then both must endorse the check. Even if you and your spouse are now divorced, both must sign the check. By law, each spouse is considered to receive half of the payment in cases where a joint 2007 return was filed. If the filers chose to have their tax refund direct-deposited, the stimulus payment will be directly deposited into the same account that received the tax refund. Q. Is my stimulus payment taxable? A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment.
