Filing Status Explained: Which One Applies?
From Tax Guide.
Tax Guide · Arab, Alabama
How Marriage and Divorce Change Your Taxes
Marriage and divorce change your filing status, your withholding, who claims the kids and how support is treated. Here is what to review after a change.
The short answer
How do marriage and divorce affect my taxes?
Both change your filing status, and your status on the last day of the year generally decides how you file for that whole year.
That last-day rule is the one that catches people. If you were married on December 31, you are treated as married for the year. If your divorce is final by that date, you are treated as unmarried for the year. It does not matter how long you were together during the year.
A change in family life also touches your withholding, your Social Security records, who claims the children and how payments between former spouses are treated. This guide covers each in general terms, and your situation may differ.
Newly married
What should I do with my taxes after I get married?
Review your withholding, update your name with the Social Security Administration if it changed, and decide whether to file jointly or separately.
Two incomes together can put you in a different tax position than either of you had alone. Many couples find their withholding no longer fits after the wedding, and the result is either a bill or a large refund. Our guide on adjusting your withholding with a new W-4 explains how to check.
A name change needs to match the Social Security Administration's records, or the return can be rejected. See e-file rejected tax return for what happens when names or numbers do not match. Married couples generally choose between filing together or separately, which we compare in filing status explained.
- Update your name with the Social Security Administration first, then your employer.
- Give each employer a new W-4.
- Gather both spouses' W-2s and 1099s.
- Talk over whether to file jointly or separately.
Divorce
How does divorce change my tax filing?
After a divorce is final, you file as single or, if you qualify, as head of household, and you must stop using a joint filing status.
If the divorce is not final by the end of the year, you may still be treated as married. A person who is legally separated under a court order may be treated differently than a person who is simply living apart. These distinctions turn on the facts, so bring the divorce or separation papers.
A joint return from an earlier year remains a joint return. Both spouses are generally responsible for what is on it, which can come up after a split. If you need relief from a former spouse's errors, our guide on injured spouse and innocent spouse relief explains the options.
Children
Who claims the kids after a divorce?
Generally the parent the child lives with for the greater part of the year claims the child, unless that parent signs a release allowing the other parent to do so.
Parents can be locked in a dispute when both file and claim the same child. The IRS matches Social Security numbers, and duplicate claims often lead to a rejected return or a notice. A divorce decree does not by itself override the IRS rules, though a signed release form can. Our guide on dependents and child-related credits explains the tests.
| Question | Usual answer |
|---|---|
| Who claims the child? | The custodial parent, by default |
| Can the other parent claim the child? | Sometimes, with a signed release from the custodial parent |
| Who can file as head of household? | Often the custodial parent, if other tests are met |
| What if both parents claim the child? | The return may be rejected or the IRS may send a notice |
General patterns. Court orders and the specific tests decide the actual result.
Support and property
Is alimony taxable, and what about child support?
Child support is not taxable to the person who receives it and is not deductible by the person who pays it; alimony depends on when the divorce or separation agreement was made.
Older agreements generally made alimony deductible for the payer and taxable to the recipient. Agreements made under newer law generally do not. The date and the exact wording of the agreement matter, and a later change to an old agreement can bring in the newer rules. Please bring the agreement so we can read it.
Splitting property in a divorce is usually not taxable at the time of transfer between spouses, but the person who keeps an asset takes on its basis, and a later sale can create a gain. Retirement accounts may be divided under a court order, which has its own rules. Selling the marital home is covered in taxes when you sell your home.
How we can help
Need help with your taxes after a life change?
Our office prepares income tax returns for individuals and families, including the first return after a marriage or divorce.
Bring your divorce or separation papers, any release of a child claim, your W-2s and 1099s, and your children's Social Security cards. Please do not send Social Security numbers or documents through the website; bring them to the office or call us at 256-586-4635. We are not attorneys and do not give legal advice on divorce, but we can explain the tax side.
We serve Arab and the surrounding area, and you can contact us to set up a time.
Answers
Questions about marriage and divorce
Do I have to file jointly after I get married?
No. Married couples can usually choose to file jointly or separately. Which is better depends on your income, credits and situation, and we can compare both.
When does my marital status count for the year?
Your status on December 31 generally decides how you file for the whole year.
Who claims the kids when parents are divorced?
Generally the parent the child lives with more than half the year, unless that parent signs a release for the other parent to claim the child.
Is child support taxable?
No. Child support is not taxable to the person who receives it and is not deductible by the person who pays it.
Is alimony deductible?
It depends on when the divorce or separation agreement was made. We would need to read the agreement to say how it is treated.
Do I need to change my W-4 after a divorce or marriage?
It is a good idea. Your filing status and household income change, and an updated W-4 helps your withholding match your new situation.
Read next
Related reading
Who Can I Claim as a Dependent on Taxes?
From Tax Guide.
How To Fill Out a New W-4 and Adjust Withholding
From Tax Guide.
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