Divorce & Taxes 101: Filing Taxes After a Divorce – The TurboTax Blog

Divorce is difficult and no one is immune to it, but we ’ ra here to help you learn the tax implications .

Things to Know about Filing Taxes after Divorce

If you are one of the many people who went through a divorce stopping point year, you will be coping with a different tax situation as a consequence and may even be filing your own tax recurrence for the first gear prison term. here are 10 things you should know now that you are divorced .

1. Filing your taxes for the first time is easy with TurboTax

If this is the first time filing your taxes yourself with TurboTax, don ’ thyroxine worry. TurboTax will ask bare questions about you and will give you the tax deductions and credits you ’ re eligible for based on your entries, whether or not you are divorced .
If you have questions, you can besides connect know via one-way television to a TurboTax Live tax expert with an modal 12 years-experience to get your tax questions answered.

2. Understand your filing status

Your marital status at the end of the year determines how you file your tax return. If you were divorced by midnight on December 31 of the tax class, you will file individually from your early spouse. If you are the custodial parent for your children, you may qualify for the friendly principal of family condition. If not, you will file as a single taxpayer even if you were married for part of the tax year. TurboTax will ask you simple questions and will determine the file status that ’ s best for you based on your entries .

3. Consider the tax implications of child support

Child digest is not tax deductible to the person who pays it, and alimony paid will entirely be tax deductible if your divorce was already final in 2018. Likewise, the recipient of alimony must claim it on their tax return if the divorce was final examination by December 31, 2018, but child support international relations and security network ’ triiodothyronine reported as income .
If you rolled your accompaniment together into “ family patronize ” in your agreement, that makes it in full taxable to the recipient and deductible to the payer, just like alimony. Under tax reform, beginning in tax year 2019 ( the taxes you filed in 2020 ), the person paying alimony is no farseeing allowed to deduct the alimony paid, and the person receiving alimony will no long have to claim the alimony as income if your divorce was final after December 31, 2018. Divorces final examination prior to 2019 are grandfathered under the old rules .

4. Don’t run afoul of the special rules regarding support

If alimony payments are concentrated in the first year or two after divorce, the IRS may consider the money to be a non-deductible property settlement .
additionally, if alimony is scheduled to end within six months of a child ’ s 18th or 21st birthday, the IRS may consider the alimony, in reality, to be disguised child defend .

5. Review your divorce decree to see who will claim the children as dependents

If your disassociate agreement did not specify who claims the children as dependents, then the custodial parent gets to claim them. If you have joint custody, the rear who has the child the greatest total of days during the tax year gets to claim the child as a dependent .

6. Claim Head of Household if You Have a Child

If you are considered individual on the last day of the year ( whether divorced or legally separated ), you may be able to take a higher standard deduction for Head of Household than if you file claiming a single status. You can claim Head of Household if you have a stipulate dependent and provide more than one-half of their support. The standard discount is $ 18,800 for Head of Household compared to $ 12,550 for single charge condition for tax year 2021 .

7. File first if you are entitled to claim your child but there are issues with your ex

If you are entitled to claim your children on your tax return, but your ex-wife threatens to claim them rather, file early in the year. That direction, since you ’ ve already claimed your children, the IRS will make your x prove he or she was entitled to claim them .

8. Claim the Child and Dependent Care Credit if you are eligible

In former years, the Child and Dependent Care credit was not a refundable credit. But for the 2021 tax year only, the recognition will be refundable if you lived in the United States for more than half of the class. This means that flush if you don ’ thyroxine owe any taxes you could get the credit in the shape of a tax refund .
besides for the 2021 tax year only, the Child and Dependent Care Credit expanded the share and the child wish expense thresholds, so you can get a credit rating up to 50 % of $ 8,000 ( $ 4,000 ) in child caution expenses for one child under 13 ( no long time limit if disabled ), an disable spouse or parent, or another dependent so that you can work and up to 50 % of $ 16,000 in expenses ( $ 8,000 ) for families with two or more dependents.

9. If you are employed, change your withholding on Form W-4

It ’ s always best to review your withholding whenever there are life changes. Update your W-4 with your employer to make indisputable that it reflects the most up to date data related to changes in your filing status, dependents, or income .

10. Estimate your tax picture

With the new changes in your animation, you can get an estimate of your overall tax picture by going on-line with TurboTax. You don ’ metric ton wage anything until you file, and in some cases you may be able to file for free .

TurboTax Has You Covered

Don ’ triiodothyronine worry about knowing the tax implications of divorce. TurboTax will ask simple questions about you and give you the tax deductions and credits you ’ re eligible for based on your answers .
If you have questions, you can connect alive via one-way video to a TurboTax Live tax technical with an average of 12 years-experience to get your tax questions answered from the comfort of your dwelling. TurboTax live tax experts are available in English and Spanish, year round, and can besides review, sign of the zodiac, and file your tax return all from the comfort of your home .

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