Dear Liz: My ex-husband took out a credit card in my name without my knowledge. By the time I discovered it on a credit report, he had over $14,000 in charges on the card. I was able to close the credit card, but cannot remove my name and Social Security number from the account. My ex refuses to pay off the credit card nor does he make payments on the card as a judge ordered him to do in court six months ago. I have called the issuing bank, visited in person, spoken with everyone that I can, to no avail. The best they can do is flag the card for fraud. Since the credit card is not being paid off, it is damaging my credit score. Do you have any advice?
Answer: Report the crime to your local police and file an identity theft complaint with the Federal Trade Commission at IdentityTheft.gov. The police report means your ex could be arrested and prosecuted for his crime, but without it you may not be able to get your credit restored.
Submit copies of the police report and the FTC affidavit to the bank, along with a letter explaining the situation. Make it clear that you are the victim of identity theft, that the account is fraudulent and that the bank should remove your personal identifying information when reporting the account to the credit bureaus.
Next, dispute the account with each of the three major credit bureaus. You can get free access to your credit reports at AnnualCreditReport.com. (Type the full address into your browser to make sure you don’t land on a lookalike site.) While you’re at it, freeze your credit report at each bureau. There’s no better way to prevent criminals from opening new credit accounts in your name. Freezing your credit report is free, and you can temporarily remove the freeze without cost whenever you want to apply for credit.
Dear Liz: My tax professional submitted amended tax returns for 2023, 2022 and 2021 a year ago. I’m supposed to receive a nice refund for those years but I have heard nothing from the IRS and cannot get any information from its website. I asked my tax professional about it and she said the foreign tax credit claimed on the amended returns must be reviewed by the foreign tax department, which is very far behind. This just feels like a black hole. The IRS wants me to pay my taxes but drags its feet on giving me my refund.
Answer: The foreign tax credit is designed to prevent double taxation. If you earn income abroad, you may be able to deduct taxes paid to another country on your U.S. tax return.
Unfortunately, this is an area where there has been substantial fraud and noncompliance. That raises the odds of a manual review and potential audit. The fact that you’re claiming large refunds, and doing so by amending returns, also increases the chance your filings will be scrutinized.
Still, a year is a long time to wait. Consider reaching out to the Taxpayer Advocate Service, which may be able to help you break the logjam.
Dear Liz: I started collecting my Social Security at age 62 because I had cancer and could not work. My husband is now ill and will pass on soon. Will I still be able to get my husband’s Social Security, which is much higher than mine, when he passes on?
Answer: Yes. Surviving spouses get the larger of a couple’s two Social Security checks. You’ll no longer be able to collect your own benefit.
Liz Weston, certified financial planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
The post What do you do when an ex takes out credit cards in your name? appeared first on Los Angeles Times.
