It is fairly common knowledge that a
divorce can end up affecting all aspects of your life, from
where you lay your head at night to how often you are allowed to see your kids. Despite the widespread
influence of a marriage’s dissolution, not many people are aware
that a divorce can also affect your taxes. If you have been recently divorced
in Texas, there are a few changes that are probably going to impact your
taxes this year because of it.
Filing status: You know that you are no longer married and probably consider yourself as
“single” but does the Internal Revenue Service (IRS)? It all
depends on when your divorce was finalized. If your divorce was signed
and finished before December 31st, congratulations, the IRS thinks you are single, too. If it lasted into
January, or all the way up to the final day to file your taxes, you must
still file as someone who is married (joint filing).
Dependents: A divorce can be hard on your children but it can also be just as complicated
for you and your spouse, especially when it comes to tax filings. Only
one of you will be able to claim your child as a dependent, but who gets
the right? According to the IRS, the parent who won primary custody and
therefore spends the most time with your child each week may claim them
as a dependent.
IRS Form 8332: Filing your child as a dependency can be a great relief during tax season,
as it could entitle you to a greater return in the long run. But what
can you do if you did not get primary custody and make much less income
than your ex? If the two of you agree and approve, you can use an IRS
Form 8332 to transfer the right to claim dependents from one parent to
the other. This will not change your
child support, or
alimony payments; it only affects your tax filings.
Preparing your taxes can be a real burden in the best of situations. If
you have a divorce hanging over your head, allow our Fort Worth divorce
attorney from Favila Terry Law, PLLC to help you make sense of your
family law issue before you get too deep into your filing this tax season.
Contact us by calling
817.330.8177 or by filling out an
online consultation form today.