When you get divorced, your entire world changes all around you. Of course, the emotional turmoil you are going through and moving back into a life you have not known for years are only some of the changes that you are going to have to make. Another inevitable change is going to be in your tax status. How you file, what you can deduct, and some other issues are going to get a little bit more complicated than they were when you were a “happy” couple filing together. Just remember that your tax status does not change instantaneously when you get divorced- those changes are a little bit slower to come about.
One of the biggest misconceptions about your taxes is that when you get divorced, you have to file as single that year. The most effective way to file is to do so as married and filing separately. This way, you can deduct your own things, claim your own credits, and not have to worry about further mixing up your financial life with your ex partner’s. With all of the emotions that typically run through people during the divorce process, you probably want nothing less than to be further associated with them. You can even use a free tax calculator to help you figure out where you’ll come out.
Did you know that when you pay for something, you can deduct it? For instance, if you are paying for your child’s college tuition, you can claim the American Opportunity higher education credit up to $2,500. And if you are paying your former spouse alimony in cash, as lined up in the terms of the divorce, you can also deduct that amount. As far as claiming your child as a dependent, you can only do so if the child lived with you for more of the tax year in question than they did with your ex spouse.
