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How Should I File My Taxes While Going Through an Arizona Divorce?

Posted On April 12, 2022 In Divorce

If you are contemplating an Arizona divorce or are in the midst of a divorce, you may be concerned about your tax filing status. The following is a brief overview of matters to consider when approaching tax filing season with your soon-to-be ex-spouse.

For more information about the tax consequences of different filing statuses and the impact of divorce orders on your taxes, speak with an experienced divorce attorney in the Phoenix area.

Will You Be Legally Divorced on December 31st?

The year your divorce is finalized is the first year you cannot use your married status when filing your taxes. If you are still married on December 31st, then you must file jointly with your spouse or file as married filing separately. If you are legally separated or divorced on December 31st, you are considered single for tax purposes, and your filing must reflect that single status.

What About Filing as Head of Household?

Some separated spouses can file as head of household. Head of household status allows for a larger standard deduction. However, there are criteria that you must meet to file as head of household.

These include:

  • Filing a separate tax return from your spouse for the tax year;
  • Paying for over half the upkeep of your home in the tax year;
  • Living independently from your spouse for the last six months of the tax year; and
  • Having a dependent child living with you for more than half of the tax year.

If you do not qualify for head of household, you may benefit from tax deductions, credits, and other benefits available to joint tax filers.

Can I File Jointly With My Spouse?

You could file jointly with your spouse if you were married on December 31st of the tax year. This is often easier and more beneficial to both spouses financially.

When Would I Not Want to File Jointly With My Spouse?

If you have concerns about your spouse’s integrity when filing their taxes, you may choose to file a separate tax return to limit your liability. In cases where you cannot amicably discuss or work with your spouse due to domestic violence or a hostile power structure, you may choose to file your taxes separately.

Divorce-Related Tax Consequences

There are tax deductions to explore if you are divorcing or are newly divorced. These include dependent medical bills, the Child Tax Credit, and other dependency exemptions. Spousal support and alimony do not qualify.

It is imperative to discuss the tax effects of asset transfers, home sales, and the transfer of retirement assets with your divorce attorney before making final decisions on property division.

Contact an Experienced Divorce Attorney in Arizona

If you would like more information about filing your taxes during a divorce, contact a legal professional at Wilson-Goodman Law Group, PLLC. Our experienced Chandler divorce attorneys will meet with you in a confidential setting to discuss the filing status that would best serve your interests both now and in the near future.

There is not a single tax filing solution in a divorce. Wilson-Goodman Law Group, PLLC, will carefully scrutinize your situation before making recommendations.