Taxes and Divorce

Taxes and divorce.  Only 28 more days to till Tax Day!

Being divorced or going through a divorce  impacts your taxes.  Here are a few quick tips to keep in mind while doing your taxes.

Marital status changes tax filing status.  Your marital status on December 31 of the year you are filing tax returns for determines your filing status.  This means that if you are not divorced on that date you can use only one of two filing statuses for married couples: married filing jointly or married filing separarely.

Once you are divorced you could qualify to file as head of household if you maintain the cost of keeping up your home and you have a dependent living in your house for more than half of the year.  If you do not meet those conditions, you will file as single.

Change your name.  The IRS needs to know if you changed your name with Social Security.  Your name on the tax return must match what the Social Security Administration has on file.  If it doesn't, it could take longer to process your return and delay your refund.

Tax accountant.  If you share a tax professional after you are divorced, be sure that you sign a written waiver of a conflict of interest.  The tax pro is required to disclose any confict of interest that may arise in a post divorce situation.

Household help.  Paying any household help?  Then you probably have an EIN number on which you report wages and taxes.  EIN numbers are attached to one person's Social Security number.  Get a new EIN number if the existing one is attached to your X and  you are going to contiune to pay wages to your household help.  It is easy to get an EIN number.  Go to and enter "EIN" in the search box.  You can get one in minutes.

Finally, everyone's tax situation is unique.  Discuss your facts and circumstances with your tax professional.


Disclosure:  Part of this article was based on an article provided to me by the tax prep company that I work for.  The one with the big green block!

Follow me on Twitter @DivorceChicagoS





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