The IRS reminds taxpayers who are getting divorced of the best tips and things to do when you are in this situation to prepare your tax return. For example, Americans in this situation should pay close attention to filing status, dependents you could claim, whether you must pay alimony or you are receiving it, and last, but not least, tax withholding.
As a matter of fact, getting legally divorced or separated affects how you file your taxes. Therefore, it is best to prepare for the next tax season, or this one if you have not filed yet, and learn about the changes to consider provided by the IRS. The sooner you start preparing it, the easier it will be to file and to get a direct deposit as quickly as possible.
IRS: Filing Status
When it comes to filing status, you have to think of its real importance. Actually, it determines your standard deduction, filing requirements, as well as your tax liability and eligibility for certain tax credits in the United States.
For your information, the IRS establishes that your filing status generally depends on whether you are unmarried or married on the very last day of the year. That is exactly on December 31.
Do not forget that the Internal Revenue Service will consider you to be married for filing purposes until you receive a final decree of separate or divorce maintenance.
What is more, you must take into account that you are to file as a single taxpayer for the tax year if you are legally separate or divorced at the end of the year. This is like that unless you are eligible to file your tax return as a head of household, or if you get married again, that is, you remarry by the end of the year
IRS filing statuses for married taxpayers
Taxpayers who are legally married at the end of the year must file their tax return for that tax year and choose the filing status that suits them best. For example, you could choose;
- Married filing separately
- In this case, if you file your tax returns separately, you will only have to report your income. So, do not forget to claim any deductions or credits you qualify for on your individual tax return. (Check rules if you live in a community property, though).
- Married filing jointly
- If you are in this situation, you will need to report your combined income. Of course, you will have to deduct your combined allowable expenses, too. As a matter of fact, most couples see their taxes lowered when filing jointly. (Tax relief for spouses is another option to explore)
- Head of Household
- You may qualify if all of this applies:
- Your spouse did not live in your home for the last six months of the year
- Your home was the main home of your dependent child for more than half the year
- You paid more than half the cost of keeping up your home for the year
- You may qualify if all of this applies: