How to File Taxes After Getting Divorced With Children

A divorce often makes filing taxes complicated, especially when children are involved. Taxes after a divorce are no longer as simple as they once were. It is wise to address tax-related issues in the divorce, such as liabilities. The IRS has specific guidelines used to determine filing status, reported income and eligible deductions. Divorce brings along many changes, including changes to your tax return.

Instructions

1. Request a new W-4 from your employer. According to the IRS, you must give your employer an updated W-4 form within 10 days of the divorce to reflect the correct marital status and number of allowances. If you are not classified as the custodial parent, you can no longer claim the child as a dependent.

2. Determine your filing status. Your filing status is based on your relationship status on the last day of the year, Dec. 31. If the divorce is not final, you cannot file single. You are able to file married joint or separate married returns. Depending on your living arrangements, you may be eligible to file Head of Household. To qualify as Head of Household, you are required to have custody of one or more children while living apart from your spouse for at least six months of the tax year.

3. Understand the IRS definition of a custodial parent. The custodial parent for tax purposes is typically the parent who provides more half of the child's support. In cases of equal joint custody, this can be confusing. Refer to your divorce orders to see if this is addressed. In some cases, parents alternate years. If it is not specified in the divorce, considering coming to an agreement yourselves.

4. Report income and determine deductions. If you pay child support, it is not a deduction. Child support received is not considered income. Alimony payments must be reported if received and deducted if paid. Review your records to determine the exact amount.

References

• Divorce Net: Federal Income Tax FAQs
• Woman's Divorce: Shared Physical Custody
• IRS: Publication 504 Introductory Material
• IRS: Tax Withholding

Resources

• Turbo Tax: The tax Implications of Divorce
• IRS: 2010 Withholding Calculator