Divorce

[cjl1017]

I am getting divorced this year, it will probably not be officially final until close to 12-31. Can I still file as married because my paycheck has had taxes taken out based on "married filed jointly" until October.

[cbright1]

Unfortunately, if you are divorced on or before 12/31, you will not qualify to file jointly. 

[cjl1017]

But how is that right if 10 months out of the year the taxes taken out of my pay were based on being legally married? That doesn't seem to make sense to me?

[cbright1]

I understand your concern; however, the IRS requires that you file single starting with the year that the divorce decree is issued.

https://www.irs.gov/newsroom/some-tax-considerations-for-people-who-are-separating-or-divorcing#:~:t....

[cjl1017]

So it would be better to wait to have my divorce finalized after the first of the year then is what you are saying? So when I filed the paperwork and all of that doesn't matter, it's only when it is finalized legally, correct?

[cbright1]

If your divorce is not finalized until next year, you can still use the married filing status. It does not matter if you have filed the paperwork prior to 12/31 and it is in progress. 

[cjl1017]

What about filing as head of household instead of single or married? My spouse moved out in April

[VolvoGirl]

Whatever you and your ex decides.  Your ex has to agree to file Joint for 2022.  But if you get divorced by the end of the year you will file Single or Head of Household if you have a dependent and you will have less income to be taxed so the withholding may be enough for just your income.  

[cbright1]

Yes, you may be eligible to file as head of household. The IRS considers you unmarried and allows you to claim the HOH status if you meet the following criteria:

• You file a separate return
• You paid more than half of the cost of keeping up your home for the tax year
• Your spouse did not live in the home during the last 6 months of the tax year
• Your home was the main home for your child, step child, or foster child for at least 6 months of the tax year
• You must be able to claim the child as a dependent unless the only reason that you can't claim the child is because the noncustodial parent can claim the child under certain rules.

[cjl1017]

Ah ok, then I don't qualify for that. I just don't understand why I am punished financially for getting divorced before the end of the year, so I guess I just have to make sure that the divorce is not finalized until after the first of the year then. Doesn't make sense to me but I guess that's just what I'm going to have to do

[VolvoGirl]

Income tax is based on your status on 12/31 and the total of income and withholding for the year.  The status on the W4 doesn't matter.  Just the total withheld on your W2 at the end of the year.  If you do file Single you may find the withholding will be enough to cover just your income.  

[VolvoGirl]

When you changed your withholding in Oct to single was the withholding more or less taken out of your checks?