If you are going through a divorce in 2024, it’s important to understand how this turn of events will impact your tax filing for both the current year (2024) and the following year (2025). Divorce can alter your filing status, tax deduction and even your eligibility for certain tax credits, which are just some of the reasons why it is important to plan ahead to avoid surprises.
Especially if your divorce case is likely to be complex, there is no substitute for truly personalized legal guidance. However, gathering information about the basics of this concern on your own can help you to make more informed decisions as you meet with your legal team and tax professionals.
Tax filing for 2024: While you are divorcing
For the 2024 tax year, your filing status will depend on your marital status as of December 31, 2024. If you are still legally married on this date, you will likely file as either:
- Married Filing Jointly: This option allows you and your spouse to combine your incomes and deductions, often resulting in a lower tax liability. However, this option requires both spouses to agree to file jointly and be responsible for the accuracy of the return.
- Married Filing Separately: If you and your spouse are separated but not legally divorced by December 31, 2024, you may opt to file separately. However, this typically results in higher tax rates and the loss of certain deductions and credits, like the Child and Dependent Care Credit.
If you are separated but still legally married, both you and your spouse must agree to the filing status you choose. If you’re unsure about which option is best for your situation, that’s okay. Legal and financial guidance and support opportunities exist for many reasons.
Tax filing for 2025: (Likely) after your divorce is finalized
Similarly, your filing status for your 2025 tax filing will depend on your marital status as of December 31, 2025. If you are no longer married by the end of 2025, your filing options will be:
- Single: If you do not have any dependents or qualify for head of household status, you will file as a single taxpayer.
- Head of Household: If you are the parent of a dependent child whom you “host” for more overnights during the year than your child’s other parent (or some other exception to your situation applies), you may qualify for the more favorable head of household filing status. This status allows you to take a higher standard deduction and may result in a lower overall tax rate compared to filing as single.
Divorce affects your tax filing status, deductions and credits. Planning ahead for both 2024 and 2025 can help you to minimize tax liability and comply with tax laws.