Filing for Taxes After a Divorce

Divorce can bring many changes to your life, including your financial situation. There are various tax implications when it comes to parting ways with your spouse to be aware of — and your taxes may look very different after divorce than they did during your marriage. Not only will you no longer be able to file taxes jointly, but you will also have to determine who will get to claim the children as dependents. Your tax filing status will also affect your standard deduction amount. Here are several things to consider when filing taxes after divorce:

Changing Tax Filing Status

You may have filed a joint tax return with your spouse during your marriage to take advantage of the applicable deductions and exemptions. Pursuant to the IRS’s rules, you would still be considered married until December 31st — the last day of the tax year — even if the court granted your divorce months prior. This gives you the option to file joint or separate returns for the tax year your divorce was finalized.

By filing your taxes jointly, you and your spouse would combine your income and deduct your combined allowable expenses, which could significantly lower your tax burden. The tax year following your divorce, you and your spouse would file your taxes separately. In such cases, you would only report your own income, deductions, and credits on an individual return, rather than combine your income with your spouse.

If you plan to file your taxes jointly, it’s vital to be aware that both you and your spouse are responsible for the tax bill. Even if you pay your portion, you would still be responsible for your spouse’s share if they do not pay it.

Claiming Dependents

Claiming dependents on your tax return can lower your taxable income and allow you to qualify for certain credits. Your divorce agreement should specify who gets to claim the children as dependents for tax purposes. If it does not, it should outline how many days, overnights, and holidays each parent spends with the children. The custodial parent (the parent with whom the children spend most of their time) would typically get to claim them as dependents.

If you and your ex-spouse share joint custody, and the children lived with each of you for an equal amount of time, the custodial parent will be determined to be the parent with the higher Adjusted Gross Income. Parents may also agree to alternate the years each can claim the children as dependents.

In some cases, a non-custodial parent can claim the children as dependents when filing taxes after divorce. Significantly, a non-custodial parent can claim the child tax credit if:

• The custodial parent consents and files IRS Form 8332- Release of Claim to Exemption for Child by Custodial Parent
• The divorce judgment specifies that the non-custodial parent can claim the children
• The custody order specifies that the non-custodial parent can claim the children

Unless you file a joint tax return, only one parent is permitted to claim a child as dependent per tax year. If both parents claim a child, the second parent to file will be notified by the IRS that the dependent was already claimed by someone else. If you and your former spouse cannot agree on who gets to claim the children, the IRS will use the information it has to determine the outcome.

Alimony and Child Support

Another consideration for spouses when it comes to filing taxes after divorce concerns alimony and child support. Alimony payments can only be reported for the purpose of tax deductions for divorces that occurred prior to December 31, 2018. As of 2019, alimony is not tax deductible for the paying spouse under the Tax Cuts and Jobs Act of 2017. It is also no longer classified as taxable income for the recipient spouse.

Similarly, child support is not subject to tax treatment. It is neither taxable to the receiving spouse nor deductible by the paying spouse. In other words, when filing taxes after divorce, child support is not reported to the IRS.

Contact an Experienced Missouri Divorce and Family Law Attorney

If you are going through a divorce, it’s essential to have a knowledgeable attorney by your side who can ensure both your legal and financial rights are safeguarded. Divorce and family law attorney Mark A. Wortman helps his clients navigate the divorce process every step of the way. Offering knowledgeable representation to clients in the greater Kansas City, Missouri area for divorce and family law matters, Mark is committed to securing the best possible results for every client.

Schedule a confidential consultation to learn how attorney Mark A. Wortman can assist you with your divorce matter. Please contact him today online or by calling (816) 523-6100.