DIVORCE AND TAX

Filing of Tax Returns by Divorced Persons*

Under what filing status should I file my taxes?

There are four different filing statuses under which you can file your income tax returns:

1) Single

2) Married filing jointly

3) Married filing separately

4) Head of household.

The best tax rate is available if you file your tax returns under the status 'married filing jointly' because then your household will pay the least amount of taxes.  To qualify for this status, you must be married as of December 31 of the applicable tax year and must be filing a joint tax return with your spouse.

The second best tax rate is for those who file as 'head of household'. To qualify for this status, you must be single no later than December 31 of the applicable tax year, and must have maintained a household for a child, stepchild, or other qualifying dependent for more than one half of the year.

The worst tax rate is for those persons who are married filing separately. 

The tax rate for single filers is slightly better than married filing separately.  In order to qualify for single filing status, you must be single or divorced no later than December 31 of the applicable tax year.

How do I know if I am considered married or divorced for purposes of my filing status?

If you were married as of December 31 of the applicable tax year, you are considered married for that year for the purposes of determining your filing status, regardless of the fact that you were divorced from your spouse on a later date. If you are divorced on or prior to December 31 of the applicable tax year, you are considered to be not married for that tax year.

Which person pays the taxes on maintenance and child support?

The person who gets the maintenance (also called alimony) must report that amount as income on his or her tax returns, and pay taxes on it. The person who pays the maintenance gets to make a deduction from their income amount before calculating his or her taxes.

The person who gets child support does not have to report that money as income. The person who pays child support cannot make a deduction from his or her income.

Which parent gets to claim the Earned Income Tax Credit?

A parent or parents with dependents (children) may qualify for a refundable tax credit called the Earned Income Tax Credit or "EITC". To qualify for the EITC, the parent or parents must have provided a home for one or more dependents for over six months of the applicable tax year.  The parent or parents must also file taxes either jointly or as head of household. The maximum EITC that a parent or parents can claim is $2,662 for one dependent and $4,400 for two or more dependents. A parent cannot sign over the right to claim the EITC to a non-custodial parent. Individuals with adjusted gross incomes less than $11,750 also may qualify for a small EITC.

If both parents qualify for the EITC based on the same dependent children, then the parent with the greater income will get the credit. This would come into play if the parties lived together with the child or children for more than six months, separated, and got divorced before December 31 of the tax year.

Click on the title below to learn more about applying for the EITC:
How to Determine if You are Eligible for the Federal Earned Income Tax Credit

Which parent gets the dependent exemption for a child?

The dependent or personal exemption for children is a deduction from income that is allowed for each qualifying dependent. To qualify as a dependent, a child must either be: