If you are preparing to end your marriage or recently finished the divorce process, it is crucial to have a clear understanding of the different ways in which ending your marriage could impact your life. Aside from property division and other divorce topics, it is crucial to review the potential ways in which divorce could affect your taxes.
When it comes to divorce, every couple is in a unique financial situation, and it is vital to review your divorce and finances on an individualized basis.
Divorce and your tax filing status
The Internal Revenue Service states that getting a divorce can affect your taxes in multiple ways. For starters, your filing status could change after ending your marriage. If you legally end your marriage before the end of the year, your status changes to single for that tax year (unless you tie the knot again or can submit a head of household filing).
Your filing status can affect your taxes in various ways, from tax credits to your standard deduction and filing requirements.
Other ways a divorce can impact taxes
Aside from your filing status, there are other tax-related changes that could arise due to divorce. If you change your last name, make sure you inform the Social Security Administration promptly and file your tax return with the same last name on SSA records to avoid delays. Getting a divorce could also bring changes with respect to tax withholding and you should review whether you have to report certain property transfers on your tax return.