You have filed for divorce, and soon it becomes tax time. How do you handle your new filing status? Who gets to file for head of household? Who claims the mortgage interest? Taxes after divorce can be complicated and if not handled properly may become an important financial blow to both of you.
When you were married, you could file your taxes jointly and would enjoy many tax benefits, as a single person, your tax filing status changes. What happens when your divorce becomes final on December 31st? Then one of you can claim head of household if you have lived together for more than six months of the year. Your filing status depends on your marital status at the end of the year.
One of the biggest tax strains on divorced families is who gets to claim the kids. This subject can become a bit tricky. Prior to 2009, you could use your divorce settlement to back up your claim. That is no longer the case, now the IRS form 8332- “Release /Revocation of release of claim to exemptions for child custodial parent” must be signed by the custodial parents for the non-custodial parents use.
