After I got married, on my W-4, i claimed 9 allowances because I have two step children and my wife who doesn't work. as well as changing my status from Single to Married. That boosted my check by almost $300 per month.
If I get divorced before the end of the year, will I be forced to file as a single person with no dependents? In other words, will I owe thousands of taxes back? ($300 X 12 months = $4800).
Am I correct in these assumptions, or will I get some kind of break because for most of the year I was married and supported two children?
It doesn't seem fair that, say, for the first 10 months of the year, you support a wife and two kids, and then comes January, you have to file as a single person with no defendants just because of a late year divorce.
2007-09-17 02:37:53 · 7 answers · asked by jimmyaven 1 in Business & Finance ➔ Taxes ➔ United States
It's your status at year end that counts. If you are divorced on 12/31 of any year, then your status is single, unless you can claim one or more of the dependents, and you might want to have that spelled out in the divorce agreement. Also, depending on how it is worded, alimony can be deductible to the person paying it, and taxable to the person receiving it. Child support is never deductible by the payer, nor taxable to the receiver.
2007-09-17 03:32:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you and your wife will be divorced by the end of the year, you cannot file as a married person. I am assuming that you will be divorced by the end of the year.
The children are your stepchildren, and divorcing the other parent does not change your relationship to the children for tax purposes.
Will you have spent more time living with the children in 2007 than the mother? If so, you are the custodial parent and could file as Head of Household, assuming you have lived with the children for at least six months.
If you are not the custodial parent, put a clause in your separation agreement that you will claim the children for 2007. Alternately, have the mother sign Form 8332 waiving the exemption to you for 2007.
If you are not the custodial parent, or fail to get Form 8332 or a court document, then you are not allowed to claim the children as dependents.
2007-09-17 15:32:35 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Your marital status on 12/31 determines your filing status for the entire year. If you are divorced, your filing status will be single. If not enough tax is withheld, you'll owe when you file.
Unfortunately you do not get partial credit for supporting them for the major part of the year. Since these are your step-children it's highly unlikely that any court would grant you the exemptions for them as the parents have first order of priority there unless you are given custody of them which also would be highly unlikely with step-children.
If anything, you should try and time the divorce to occur just after the first of the year and file a joint return if at all possible. Anything else is going to cost you dearly when you file your return. If this isn't possible or likely you'd best have your withholdings changed and have additional tax withheld to cover the potential liability and avoid any penalties and interest for underpayment of tax.
BTW, $300 x 12 months = $3,600.00, not $4,800.00
2007-09-17 03:39:28 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Yes, you'll have to file as single if you are divorced by the end of the year, and unless you have custody of the stepchildren or your former wife gives you written permission to claim them, you won't be able to claim them as dependents. If you supported them 10 months of the year, you might see if your former wife is willing to sign a form allowing you to claim the kids for this year - the form number is 8332, and you or she can download it at irs.,gov - she isn't required to, and if she doesn't, you can't claim them kids.
So yes, unfortunately, your assumptions are correct. It's actually even a little worse than that - you might owe a penalty for underwithholding if you owe over $1000 when you file your return. You'd be wise to start having more taken out of your check, or to make an estimated payment to cover this shortfall.
Good luck.
2007-09-17 03:53:58 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
mid year divorce owe taxes year
2016-02-02 13:47:39 · answer #5 · answered by Natal 4 · 0⤊ 0⤋
If you divorce, you cannot claim her as a dependent but can still claim yourself as a dependent.
The children are more complicated. Each child can be claimed by one of you, but neither child can be claimed by both of you. See "rules for children of divorced or separated parents" on www.irs.gov or in the instructions for the 1040 to determine which of you can claim each child.
2007-09-17 07:45:22 · answer #6 · answered by StephenWeinstein 7 · 0⤊ 0⤋
I would check with an accountant who knows the divorce tax laws as well as the state ones...
2007-09-17 02:43:19 · answer #7 · answered by De 5 · 0⤊ 2⤋