How Will a Divorce Affect My Taxes?

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 custody, 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.