Divorced Taxpayer

Definition§

A “Divorced Taxpayer” is an individual who has been legally divorced under a final decree of divorce or separate maintenance by the last day of the tax year. In the context of U.S. tax law, such an individual is considered “unmarried” for the entire tax year and must follow specific guidelines for reporting income, claiming deductions, and filing their tax return.

Examples§

1. Finalized Divorce Before Year-End:

   • Jane and John received their final divorce decree on December 15, 2022. For the purposes of their 2022 tax returns, both Jane and John will be considered unmarried for the whole year and should file their taxes either as “Single” or “Head of Household,” provided they meet the necessary requirements for the latter status.

2. Impact on Tax Filing Status:

   • Emily and Mark finalized their divorce on November 30, 2022. Despite having been married for most of the year, Emily will file her taxes as a “Single” taxpayer for the 2022 tax year since she was legally divorced by December 31.

Frequently Asked Questions§

1. Can I file as “Married Filing Jointly” if my divorce was finalized before the end of the year?§

No, you cannot file as “Married Filing Jointly” if your divorce was finalized before the last day of the tax year. You must choose “Single” or “Head of Household” if you meet the requirements.

2. What if my divorce is finalized after December 31?§

If your divorce is finalized after December 31, you are considered married for that entire tax year, and you may file as “Married Filing Jointly” or “Married Filing Separately.”

3. How do I qualify for “Head of Household” status after a divorce?§

To qualify for “Head of Household,” you must have paid more than half the cost of maintaining a home for the year and have a qualifying dependent living with you for more than half the year.

4. Can I claim my children as dependents if I’m divorced?§

Yes, typically the custodial parent can claim the children as dependents, but sometimes non-custodial parents can claim them if they have a signed Form 8332 or equivalent document.

5. Does being divorced affect my eligibility for tax credits?§

It can. Your eligibility for credits like the Earned Income Tax Credit (EITC) or Child Tax Credit may be affected, and they often depend on your adjusted gross income (AGI) and filing status.

Related Terms§

• Separated Taxpayer: A taxpayer who is not divorced but is living apart from their spouse under a separation agreement.
• Head of Household: A tax filing status for unmarried taxpayers who paid more than half the cost of maintaining a home for a qualifying person.
• Married Filing Separately: A tax filing status used by married couples who choose to file their taxes separately.
• Dependent: A qualifying child or relative who entitles a taxpayer to claim a dependency exemption and other tax benefits.

Online References§

• IRS Topic No. 452 Alimony and Separate Maintenance
• IRS Publication 504: Divorced or Separated Individuals
• IRS Filing Status

Suggested Books for Further Studies§

1. “J.K. Lasser’s Your Income Tax Professional Guide 2023” by J.K. Lasser Institute.
2. “The Divorce Handbook: Your Basic Guide to Divorce” by James T. Friedman.
3. “Taxes and Divorce: A Guide to Tax Issues When Divorce Happens” by Karin Bonding and Jennifer Pompeo.
4. “Nolo’s Essential Guide to Divorce” by Emily Doskow.

Fundamentals of Divorced Taxpayer: Taxation Basics Quiz§

Thank you for learning about the tax implications of being a Divorced Taxpayer and testing your taxation knowledge with our comprehensive quiz. Keep aiming for clarity and precision in your financial decisions!