If you were to ask someone if they were
married or single, this would always be a question they would be able to answer
with ease and certainty. When it comes to whether you’re married or single for
your taxes, however, things aren’t quite that simple.
Is Your
Divorce Final?
If you’ve gotten divorced, you might think
that listing yourself as “single” on your taxes is a no-brainer. However, the
IRS has some rules in place about whether you qualify as single or not.
For example, whether your divorce is actually
final and complete matters. If it is final, it will need to have been finalized
by December 31st of the relevant tax year.
Are You
Living Apart?
People will also mark themselves as “single”
if they’re living apart or separated, but again, the IRS has some tricky rules
on this count.
If you’re just living apart on your own terms,
then you’re still married according to the IRS. You can only mark yourself as
single if you’ve been officially separated via a court order by December 31 of
the relevant tax year.
Know
the “Whole Year” Rule
If you are actually able to put yourself
down as “single” or “head of household” for tax purposes, make sure you
understand the “Whole Year” rule. Under this rule, if you get officially
divorced or separated at any time within a given tax year, even if it’s on the
very last day of the year, you are legally counted as “single” or “head of
household” for the whole year. You can’t file jointly for part of a year and
single for another part of it.
File
Jointly When it Makes Sense
If you and your spouse are planning on
getting divorced, you might be tempted to distance yourself from one another as
much as possible.
However, in some cases, it may be smart
to go ahead and file jointly while you still can since it will raise your
standard deduction significantly. Do your research, though, to see whether
filing together or separately makes the most sense for you.
Still confused about how to file? Or,
maybe you just want to ensure you choose the absolute best filing status for you
and your needs. Whatever the case may be, remember that professional tax help
is always a good idea.