3/26/2015

Divorce during the tax season: some considerations


If you are in the process of securing a divorce during tax season, your yearly tax return can be extra stressful. Depending on your circumstances, it may make sense to still file jointly, but your attorney or a tax accountant can help you determine the best strategy.
There are pros and cons of filing a joint return even as you work through the divorce process, because in many cases, depending on your incomes, deductions and credits, your tax burden will be lower when you file jointly. However, one big consideration you should keep in mind is that both you and your-soon-to-be ex are jointly and severally liable for any payments, deficiencies, interest, or penalties for that joint filing. So filing jointly can still make sense for some couples.
If, however, you don’t want to file jointly, you may still file separately or as the “head of household.” The later is only applicable when a number of factors are present: your spouse did not live with you for the last six months; you can claim a dependent exemption; you paid more than half of the cost of maintaining the house; and the house was your main residence for more than half the year. If you’re uncertain if you meet any of these circumstances, discuss your situation with your attorney.

Regardless of where you are in the divorce process, you should discuss your tax situation with your attorney and a tax accountant before filing.

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