Divorce

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I plan to file for divorce this year. We have two children, but they are both over 18 (18,23) How will this impact my taxes for 2026 ? Also, what changes can I expect moving forward into 2027 ? How can I adjust ?

M-MTax

Level 15

You really do need to consult with a local attorney.

See https://www.avvo.com/

M-MTax

Level 15

Regardless, your 2026 tax filing status is entirely determined by whether your divorce decree is final on or before December 31, 2026. Because your children are 18 and 23, they generally no longer qualify for major child tax benefits, though they may still impact your dependency exemptions. Moving into 2027, you will transition to single or head-of-household tax brackets, which can squeeze your income if you are a higher earner.

Mike9241

Level 15

In 2026, if you do not remarry by year-end and you are either legally divorced or, if not, lived apart from your spouse for the last 6 months of 2026 and paid more than half of the cost of keeping up a home for yourself and either child for which you can claim as a dependent who lived with you for more than six months, then you can file as head of household. if you are married on 12/31/26 and did not live part for the last 6 months of 2026 from your spouse or can’t claim either child as a dependent, that the choices are a joint return with your spouse or married filing separately. If you are not legally married on 12/31/2026 and cannot claim either child as a dependent, then you file as single.

as to whether either child would qualify as a dependent, these are the normal rules

He/she must be a US citizen, resident alien or national or a resident of Canada or Mexico.

Then you can claim him/her as a qualifying child (QC) if all these tests are met

• he/she has the same principal abode as you for more than ½ the tax year. Temporary absences like for school are ignored
• if he/she is not a full-time student, he/she is under 19 at the end of the tax year. If a full-time student, he/she is under 24 at the end of the tax year. (full-time means he attended school – (online courses and correspondence schools don’t count) during any part of five calendar months during 2026)
• he/she hasn't provided over ½ their own support
• he/he didn't file a joint return unless there was no tax liability but merely filing jointly to facilitate refund of taxes withheld or estimates paid

or you can claim him/her as a qualifying relative (QR) if all these tests are met

• his/her gross income for 2026 is less than $5,300

• you provided over ½ his/her support

support: includes amounts spent on food, lodging, clothing, education, medical and dental expenses, recreation, transportation and other necessities

However, depending on how far along the process is, and assuming you are the custodial parent which would normally enable you to claim either or both as dependents (assuming the above test for either QC or QR are met), the court could order you to release claiming one or both of them to your spouse that can vary from year to year. A custodial parent is the parent with whom the dependent resides for the greater number of nights during the year

Your situation for 2027 is almost a complete unknown. Property settlements will affect your taxes. you are not taxed on the property you receive only on any income it generates. Your filing status is also unknown.

Many of these things are best discussed with your divorce attorney if you use one or a knowledgable financial planner

Mike9241