How Divorce Influences Your Taxes
As you dissolve your marriage, you will undoubtedly face a variety of challenges. Before the divorce, you had to work as a team in all areas of life, including filing your taxes. How do you know how to determine your filing status?
Arming yourself with knowledge about the differences in how to file taxes as a single adult allows you to face tax season head-on.
Understanding your filing status
In 2022, married couples saved an average of $25,900 when filing taxes jointly. Considering the advantages associated with joint filing, it is not surprising that a majority of married couples opt for this approach. Yet, in the event of separation or divorce, you have to decide whether you want to designate yourself as single or head of household.
To be eligible to file as head of household, you must meet the following criteria:
- Your spouse is absent from the residence for a span of at least six months
- You remain financially responsible for over fifty percent of the total expenses associated with maintaining your home
- Your home serves as the primary residence for your children for a minimum of six months within the year
A joint income can double your earnings; after separation, you may need to file in a new tax bracket.
Considering child custody
The courts authorize the custodial parent to claim children on their tax returns. Parents with sole custody qualify for various tax credits and exemptions, including the Child Tax Credit. If you have joint custody and find yourself in the middle of a dispute, then there are specific tiebreaker rules.
If you have traditionally filed your taxes independently from your spouse, the differences in your tax filing might not significantly change. Thinking about getting a divorce? Contact us today. We will answer all your questions.
