- Couples who are divorcing can file as single taxpayers if their divorce, legal separation or annulment is finalized by the last day of the calendar or tax year. If you are still married on the last day of the tax year, you can file married filing jointly or married filing separately. If you file jointly, both spouses are equally responsible for all tax dues, whereas if you file separately, each is only responsible for his own tax.
The IRS advises that in most cases, you will end up paying more taxes when your filing status is "married filing separately" because you will not be able to take certain credits and deductions such as the child tax credit, dependent care credit, earned income credit, education credit, tuition deduction or student loan interest deduction. You can file head of household whether you are single or married as long as you provided more than half of the household support and if you have at least one dependent. A "head of household" filing status will provide you with a bigger standard deduction than a single or married filing separately standard deduction. - If you file as married filing jointly, your children will be included together on your joint taxes. However, if you file married separately, single or head of household, only one parent can claim each child. The parent with whom the child resides for the majority of the time should be the one to claim the child as an exemption. If you share joint custody, still only one parent can claim the child. The parent with whom the child spent the most nights should claim the child.
- If you pay alimony to your spouse, you can deduct the amount paid each year. If you receive alimony from your spouse, you must claim the alimony as income and pay taxes on it. However, if you pay child support, it is not tax deductible. If you receive child support, it is tax free.
- If you are in the process of getting a divorce and the end of year is approaching, you may want to hold off the completion of the divorce if you think a joint tax return would be better for you and your spouse. Even if you are married virtually the whole year and then finalize your divorce on December 31, you will not be able to file a joint return because the IRS bases your marital status on whatever your marital status was on the very last day of the tax year.
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