How to file after divorce

[Yorklab]

Divorced late last year (Arizona) and will be doing mine and my Ex’s taxes this year. Trying to decide if I should go with TurboTax or hire someone to get it right.

She gets the house and will use the interest on the mortgage on her taxes. I will take the Capital loss carryover. No kids or other issues so simple split.

I know not to import from last year’s taxes I did on TurboTax and must start from scratch on both her and my taxes this year, but here are my questions.

When TurboTax asks if I own a home and had mortgage interest do I simply say “no” on mine and “yes” on hers?

Same with capital carry-over loss – Do I show that I have a Capital loss carryover and just don’t show it ever existed on hers?

What about our state refund, can we split that as income? For instance, if we got $600 back from state last year, do I just put it as $300 for mine and $300 for hers? (or 200/400 or however we decide?)

Will TurboTax ask about my marital status (Will it ask if I recently divorced?) so it will know my situation from that point?

[PaulaM · Accepted solution]

If you were divorced as of 12/21/2018, then you will be entering new returns for both of you. In the My Info section (online version) or Personal Info section (desktop), indicate that you were divorced. Then the same process for your ex.

If asked about the mortgage, then yes answer yes/no for each of you. Otherwise, you would just navigate to the mortgage interest section under Deductions & Credits to enter the interest on her return. You can split the state tax refund.

The loss carryover is divided and allocated based on the separate capital gain/loss for each spouse. If this was joint, then you could divide equally. But it would be advisable to check with your divorce attorney in case your decree says something specific. If community property state must do 50/50.

[Yorklab]

Thank you.

If I understand the last paragraph correctly, if I was the only one investing then I would be the one to use it? Our Decree doesn't mention this so it would be up to us to decide/agree.

One last thing. What about the form 1099-SSA Distribution from and HSA. It's mine (she now has her own), is this only entered on my return even though she was using it last year?

Thanks again.

[PaulaM]

If the loss carryover was solely yours then yes, you would be the one to use it. The 1099-SA belongs to the account owner-you in this case.