Divorce can get complicated, especially for your taxes. If you\u2019re wondering \u201chow do I file taxes after a divorce,\u201d there\u2019s a lot to consider. Whether you\u2019re dealing with a divorce, annulment, or legal separation, it can help to understand how your divorce decree is written. The more familiar you are with your agreement, the better you\u2019ll understand how it affects your taxes.<\/p>\n\n\n\n
As complicated as filing taxes after divorce and other similar events can be, we\u2019re ready to walk you through some of the biggest things to expect regarding your taxes.<\/p>\n\n\n\n
First, you might be wondering what filing status to use if you just finalized your divorce. If your divorce was finalized before the end of the year, you can\u2019t file a joint return for that year. However, you shouldn\u2019t automatically file as a single person.<\/p>\n\n\n\n
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Here are some exceptions:<\/p>\n\n\n\n
To qualify to file as head of household:<\/p>\n\n\n\n
Which parent claims the child depends on the parents\u2019 custodial or noncustodial status. The custodial parent is usually the parent the child lives with for more nights in the tax year. The other parent is the noncustodial parent. Taxes after divorce can get tricky, though, so continue reading to see the exceptions surrounding custodial and noncustodial parents.<\/p>\n\n\n\n
If you\u2019re the custodial parent, you can claim the child as a dependent. However, if the noncustodial parent has the custodial parent\u2019s consent, they can claim the child tax credit, if applicable.<\/p>\n\n\n\n
The custodial parent must complete Form 8332 to let the noncustodial parent claim the child\u2019s tax benefits (i.e., Child Tax Credit<\/a>, Credit for other Dependents<\/a>). <\/p>\n\n\n\n Then, the noncustodial parent must attach one of these to the return to claim the child\u2019s tax benefits:<\/p>\n\n\n\n The noncustodial parent can never claim:<\/p>\n\n\n\n This applies even if the custodial parent released the dependent exemption. Alimony payments made under divorce or separation agreements executed after Dec. 31, 2018, aren\u2019t deductible by the spouse that pays them or taxable to the recipient. This also applies to modifications made to agreements executed on or before Dec. 31, 2018, if the modification expressly states that the Tax Cuts and Jobs Act (TCJA) applies.<\/p>\n\n\n\n Alimony from agreements executed before Jan. 1, 2019, are deductible by the payer, and taxable income to the person who receives it. Alimony is also known as spousal maintenance or spousal support. Both the payer and the recipient should have alimony payments clearly defined in the divorce agreement. That divorce agreement will help you understand the alimony tax impacts you\u2019ll have.<\/p>\n\n\n\n If you pay alimony tax, you don\u2019t have to itemize to deduct it. If you receive alimony, you might need to make estimated tax payments or increase your withholding on income you earn from your job. You\u2019ll treat alimony as earned income to see if you\u2019re eligible to make an IRA contribution.<\/p>\n\n\n\n A payment to a spouse under a divorce or separation agreement that happens after 1984 counts as alimony. This is true of your alimony for tax purposes if it meets these requirements:<\/p>\n\n\n\n As part of your divorce, you may have a Qualified Domestic Relations Order (QDRO) divides a retirement plan, like a 401(k) or pension, between a plan participant and an alternate payee (usually a spouse, former spouse, or child). <\/p>\n\n\n\n This decree assigns them a portion of the benefits without triggering early withdrawal penalties or taxes at the time of transfer. It gives retirement plan administrators specific instructions on how to split funds for alimony, child support, or property division. <\/p>\n\n\n\n Another tax impact of divorce on taxes is that it can affect some health insurance payments. This is true if you both:<\/p>\n\n\n\n You need to inform the marketplace of changes in your family structure, like divorce, marriage, adoption, or job changes. Those changes can affect your monthly payment.<\/p>\n\n\n\n Whether you choose to file online <\/a>or file with a tax pro<\/a>, you can rest assured that you\u2019ll get your max refund.<\/p>\n\n\n\n Yes \u2014 you can<\/em> get help filing taxes after a divorce or marriage. H&R Block can help you file taxes after divorce, making it easy to select a new filing status, completing your forms, and more.<\/p>\n\n\n\n Have questions? H&R Block tax pros help ensure you\u2019re choosing the right filing status and completing all requirements correctly.<\/p>\n\n\n\n Your filing status after divorce generally depends on your marital situation as of December 31. If you were legally divorced by year\u2011end, you typically cannot file jointly \u2014 instead, you may file as Single<\/em> or, if you qualify, as Head of Household after divorce. To use Head of Household status, you generally must have a qualifying dependent and pay more than half the cost of maintaining your home.<\/p>\n\n\n\n Typically, the custodial parent claims the child. However, the custodial parent may release the exemption to the noncustodial parent using Form 8332, allowing the other parent to claim the child\u2011related tax benefits such as the Child Tax Credit. A divorce decree alone is not sufficient \u2014 the IRS requires Form 8332.<\/p>\n\n\n\n Yes \u2014 if your divorce was finalized at any point during the tax year, the IRS considers you unmarried for the entire year. That means you cannot file jointly with your former spouse.<\/p>\n\n\n\n When you start your return the next tax year, you’ll need to determine the correct status \u2014 typically Single or possibly Head of Household if you meet the requirements.<\/p>\n\n\n\n Divorce can affect how you report retirement\u2011related income or distributions, especially if assets were divided under a divorce agreement. If retirement assets transfer under a Qualified Domestic Relations Order (QDRO), those distributions may have special tax treatment allowing you to avoid early withdrawal penalties.<\/p>\n","protected":false},"excerpt":{"rendered":" Divorce can get complicated, especially for your taxes. If you\u2019re wondering \u201chow do I file taxes after a divorce,\u201d there\u2019s a lot to consider. Whether you\u2019re dealing with a divorce, annulment, or legal separation, it can help to understand how your divorce decree is written. The more familiar you are with your agreement, the better […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[39,125,23342,23345],"tags":[],"class_list":["post-20682","post","type-post","status-publish","format-standard","hentry","category-personal-tax-planning","category-filing","category-life-stages","category-everything-in-between"],"acf":[],"yoast_head":"\n
The custodial parent might still qualify as head of household and might be able to claim these tax benefits for that child:<\/p>\n\n\n\n\n
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Even if the decree clearly spells out custody, it usually can\u2019t trump the divorce tax law definition of custodial parent. If there\u2019s any confusion, the IRS might disallow the claiming rights of one of the parents.<\/p>\n\n\n\nAdditional tax and divorce impacts<\/h2>\n\n\n\n
Alimony tax<\/h3>\n\n\n\n
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IRAs and employer-provided retirement plans<\/h3>\n\n\n\n
Health insurance payments<\/h2>\n\n\n\n
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Get help filing taxes with H&R Block<\/h2>\n\n\n\n
Filing after divorce FAQs<\/h2>\n\n\n\n
Can I get help filing after getting married or divorced?<\/h3>\n\n\n\n
What filing status should I use after a divorce?<\/h3>\n\n\n\n
How does divorce affect claiming dependents on my tax return?<\/h3>\n\n\n\n
Do I need to file differently if my divorce was finalized during the year?<\/h3>\n\n\n\n
Does divorce affect my retirement accounts or tax reporting?<\/h3>\n\n\n\n