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Showing posts from February, 2011

Divorce and Income Tax: Untying the Knot and Counting the Cost

If you have just been through the trauma of a divorce, taxes are probably the least of your concerns. December 31st is an important day for you.  It is your marital status on that date that determines your tax filing status for the year.  If you are divorced as of that date, then you are considered single for the year.  If you are married as of that date, then your filing status will be one of the two married statuses- joint orseparate. In some cases it might be financially beneficial to put the divorce date off until the new year in order to file jointly for the past year. There is a significant question asked on the 1040 form which opens a new door for you.  It is, “Did your spouse live with you in 2010?” It follows up with, “If so, did you and your spouse live together anytime after June 30th, 2010?”  You will not be able to choose the category that gives you the most breaks- Married filing jointly as an officially divorced person. There may be other categories of benefit.  The worst…