Tax Season and Divorce

Almost immediately after the holiday season comes yet another: tax season. Though the final day to submit taxes isn’t until April, people generally begin collecting and filing early. Most employers send out the previous year’s income-related information on January 1st. Other relevant tax information comes in, often gradually, and over those few first months, people collect, calculate, and enter their taxes.
 
Divorce often raises other questions about tax time. Couples in the midst of divorce wonder if they should file as individuals or jointly, how to itemize, what to deduct, and more. Things can become quite complicated. It is perfectly acceptable to ask advice from an attorney on these matters and get some clarity. If you are divorcing in the early part of the year, here are some things to understand and/or ask for more information.

Joint Filing

Whether or not you can file jointly depends on a few factors. The IRS dictates that you may only file jointly if you were still legally married at the very end of the year, even if you were in the midst of separation. The ability to work with your spouse may be another issue. Filing jointly often means collaborating to minimize tax-related expenses. If your divorce is particularly difficult, you may need some help.

Filing Separately

If you cannot file jointly, then you may have other options:

File as Head of Household: You may be eligible for this option if you were not legally married on the final day of the year, you paid for more than half of the costs for the home and its maintenance, and another person—a spouse or children—lived with you for more than half of the entire year. The benefit of filing this way is claiming dependents.

File as Single: If you cannot file jointly or as the head of a household, you may, of course, file as single. This has its own benefits; there are still deductions to be made, such as mortgage and other potential dependents.

It is also important to consider how much you will owe in taxes if you file differently from what is on your W-4.

Common Deductions

Mortgage and children are two of the most common deductions adults may claim. If you’re not sure what will, or should affect your taxes, consult your attorney. He or she will be able to tell you who can claim this. If both you and your spouse contributed to the mortgage during the year, then it may be a more complex situation.

Children may be claimed as dependents. This can be a sensitive issue, of course. Usually, the spouse who makes more and contributes more to the children’s upbringing may make the claim. An attorney can help with this, as well. An experience collaborative divorce attorney would be particularly helpful if you and your spouse can make a collaborative divorce work.

If you plan to divorce, or are in the midst of divorce, and need help with these things, call us. Our attorneys at Miller Law know Florida divorce law and can help you sort through some tax-related issues in your divorce, too.