Selecting An Income Tax Filing Status During Divorce

During the time that it takes to finalize a divorce, some individuals must file an income tax return. Because of the faltering relationship, both persons in the marriage are usually reluctant to file a joint return. Instead of filing jointly, married persons contemplating divorce can file as married filing separately, or possibly, as head of household.

For divorcing individuals, tax filing status is determined by the legal standing of the marriage on the last day of the year. If the divorce is completed by Dec. 31, each party is usually considered single or head of household for tax purposes. Unless divorced or legally separated by the end of the year, you must select one of the filing statuses available to married persons.

Married filing separately

Several tax benefits are not available to married persons filing separately, including the earned income credit. If you have no dependents and remain married on Dec. 31, married filing separately is the only option aside from married filing jointly. If you have a dependent child, a much better filing option may be available.

Head of household

To file as head of household, you must have lived apart from your spouse for the last half of the year. You must have a dependent child who lived with you for over half of the year. You also must have provided over half of the financial support for your household.

The 6-month time requirements for your spouse and your child do not necessarily coincide. Your spouse must have lived elsewhere for the final six months of the year. Your child must have lived with you for the majority of days within the calendar year. Along with any other sources of financial support, you must have provided at least 50 percent of total household support.

By filing as head of household, you may be eligible for the earned income credit and the child tax credit. If you file as head of household, there is no mention of your spouse on the tax return itself. If you file as married filing separately, the name and Social Security number of your spouse are entered on the return.

Income tax filing is just one of many financial aspects to consider during divorce. After your divorce becomes final, be sure to notify the Social Security Administration if your name has changed. Contact a divorce attorney like Stimpson & Associates PC for further advice on how to optimize the effect of taxes on your divorce.

Share