Divorced, Separated, Married or Widowed This Year? Unpleasant Surprises May Await You at Tax Time

Article Highlights:

  • Separated Taxpayers

  • Divorced Taxpayers

  • Recently Married Taxpayers

  • Widowed Taxpayers

  • Filing Status

  • Joint and Several Liability

  • Who Claims the Children

  • Alimony

  • Community Property States

  • Affordable Care Act

Taxpayers are frequently blindsided when their filing status changes because of a life event such as marriage, divorce, separation or the death of a spouse. These occasions can be stressful or ecstatic times, and the last thing most people will be thinking about are the tax ramifications. But the ramifications are real and need to be considered to avoid unpleasant surprises. The following are some of the major tax complications for each situation.

Separated – Separating from a spouse is probably the most complicated life event and is certainly stressful for the family involved. For taxes, a separated couple can file jointly, because they are still married, or file separately.

  • Filing Status – If the couple has lived apart from each other for the last 6 months of the year, either or both of them can file as head of household (HH) provided that the spouse(s) claiming HH status paid over half the cost of maintaining a household for a dependent child, stepchild or foster child. A spouse not qualifying for HH status must file as a married person filing separately if the couple chooses not to file a joint return