How to File Your Taxes After Divorce: A Step-by-Step Guide

How to File Your Taxes After Divorce: A Step-by-Step Guide

Going to file your taxes after a divorce can be a gut-wrenching experience, serving as a stark reminder of your new marital status. Not to mention, for those who have been accustomed to filing jointly for years, it introduces new complexities and uncertainties. Andrea Heckman Law recognizes these challenges and is committed to guiding you through this process with skill and compassion, ensuring that you feel supported every step of the way. Here is our step by step guide on how to file your taxes post-divorce.  

Step 1: Gather Your Personal Information

The first step in filing your taxes post-divorce is to gather all the necessary personal information. This includes:

• Social Security numbers for you and your ex-spouse
• Dates of birth for you, your ex-spouse, and any dependents claimed on your tax return
• W-2 forms from all employers for both you and your ex-spouse
• Any 1099 forms received for additional income sources
• Documentation of any alimony or child support payments made or received
• Records of deductible expenses like mortgage interest, property taxes, medical expenses, etc.
• Any other relevant tax documents

Having all this information on hand will make the filing process smoother and more accurate.

Step 2: Determine Your Filing Status

Your tax filing status is one of the most critical elements to consider after a divorce. It determines your tax rate and the deductions you can claim. The IRS recognizes your marital status as of December 31st of the tax year. If your divorce is finalized before then, you must file as single or head of household. If you’re still legally married on December 31st, you can file as married filing jointly or married filing separately.

Head of Household Status

You can file as head of household if you meet the following conditions:

• You were unmarried on December 31st.
• You paid more than half the cost of keeping up a home for the year.
• A qualifying dependent lived with you for more than six months of the year.

Filing as head of household typically results in a lower tax rate than filing as single, so it’s worth considering if you qualify.

Benefits of Filing Jointly vs. Separately

If you’re still legally married by December 31st and choose to file jointly, you may benefit from a higher standard deduction. For example, the average deduction for married couples filing jointly was $25,900 for 2023. Filing separately often results in a lower standard deduction and may limit certain tax credits and deductions. However, it may be worth considering if you and your ex-spouse are on good terms and can agree to file jointly.

Step 3: Consider Any Child-Related Tax Benefits

If you have children, your divorce will impact several tax benefits. Here’s what you need to know:

Claiming Dependents

Only one parent can claim a child as their dependent each tax year. The custodial parent is typically responsible for claiming the child unless otherwise agreed upon in the divorce agreement.

Child Tax Credit

The Child Tax Credit is worth up to $2,000 per child under the age of 17. The credit begins to phase out for single filers with an income above $200,000 and joint filers with an income above $400,000.

Child and Dependent Care Credit

You may be eligible for the Child and Dependent Care Credit if you paid for childcare while working or looking for work. This credit could cover up to $6,000 of expenses for two or more children under 13 years old.

Step 4: Be Aware of Alimony and Child Support Taxes

Any alimony payments made are tax-deductible, while child support payments are not. On the other hand, alimony received is considered taxable income, while child support received is not. Make sure to keep accurate records of any payments made or received to avoid any discrepancies.

Step 5: Seek Professional Guidance

Filing taxes after a divorce can be complicated, and making mistakes can have significant consequences. Seeking professional guidance from an experienced tax accountant or attorney can help ensure that you file your taxes accurately and maximize any potential benefits or credits available to you.

Andrea Heckman Law: Your Support System for a Smooth Process

Filing taxes after a divorce doesn’t have to be overwhelming. By understanding your filing status, gathering necessary documents, and knowing how to claim dependents and report alimony, you can confidently manage your tax obligations. Remember, the team at Andrea Heckman Law is here to support you through every step of the process. If you need further assistance or have specific questions, don’t hesitate to reach out. Let’s make this tax season as smooth as possible together.