As you work through your divorce, don’t forget the potential impact your divorce will have on your taxes. At the very least, you’ll need to consider the tax filing status you will use while the divorce is still pending.
The Internal Revenue Service (IRS) will continue to treat you and your spouse as married as long as you are legally married on the last day of the tax year for which the tax return is due. Unless you have a final divorce decree, you’re not going to be able to file as a head of household or as unmarried, even if you and your spouse have lived separately for some time and the marriage is otherwise over except for the divorce finalization.
This means you’re going to have two filing options while you’re still going through the divorce:
- Married filing jointly
- Married filing separately
Your communication with your spouse might have degraded to the point where filing separately is your only feasible option. However, it is in both of your best interest to choose married filing jointly if possible, as this will give you access to additional savings in the form of:
- Child and dependent care credits
- Educational deductions and credits
- Student loan interest deductions
- Earned income credits
Consider also, though, that signing a joint return will also make you jointly liable for underreporting of taxes and penalties. This means if you do not trust your spouse to be truthful with reporting, it might instead be a good idea to file separately.
For more tips about choosing your filing status when going through a divorce, contact an experienced Minneapolis divorce lawyer at Appelhof, Pfeifer & Hart, P.A.
