Options for Filing Tax Returns After Divorce
Recently divorced individuals can often be faced with new challenges and problems that did not exist previously. One of them is tax filing. Married couples can file for tax either jointly or separately. Usually, the tax filing status of couples is done jointly. In California, couples only have the option for joint filing but divorced individuals can do it separately if they obtain a final decree of divorce by the end of the tax year.
If the final divorce decree is obtained before the end of the tax year, each partner has the option of filing the tax return as single or head of household. They follow the same tax rules as legally separated couples.
Filing as head of household
A head of household is a person who is unmarried and takes care of the house expenses. Those who qualify for head of household should file as such because the effective tax rate is lower than those who file as single individuals. It also protects one from joint tax liability that might arise due to the other spouse’s error.
One of the advantages of filing as head of household after divorce is that it does not require the other spouse to itemize things.
Filing joint and separate returns
In California, only married couples are allowed to file a joint return. It may not be applicable for legally separated couples and individuals should check the state tax laws first before filing a tax return. According to federal tax rules, a marriage is one where a legal union exists between two individuals. It does not matter which state the individuals belong to as long as their marriage took place in California. The state law also controls whether couples are legally separated or divorced under separate maintenance decree.
Joint returns can be filed by couples who are legally separated but still married. Separate returns can also be filed by both individuals.
Filing tax returns can be confusing and difficult after a long and tough divorce. It requires the individual to understand the state tax laws and file for returns accordingly. California state laws require couples to file tax returns jointly. Divorced individuals can file separately provided the final divorce decree has been passed by the end of the tax year. Legally separated couples can file jointly or separately. Tax rates can increase or decrease, depending upon how it is being filed and in what condition.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Gerald A. Maggio is a trained Orange County divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
