Going through a divorce is, well, taxing. It can, and very well might, leave you drained emotionally, physically and financially. According to Craig Hyldahl, CFP®, CDFA™, certified divorce financial analyst, principal of R.I.C.H. Planning Group and financial professional with AXA Advisors, countless divorce decisions can have a direct impact on one's financial well-being. “The combination of life-changing decisions and extreme stress can lead to mistakes that would not be made under ‘normal’ circumstances,” he said. But the IRS doesn’t have to be a third party to your divorce. Follow these tips to save money, reduce stress and guarantee you aren’t hit with hefty tax repercussions.
Tip 1: Report the correct marital status.
You must file your income tax as a single taxpayer if your divorce was concluded by the end of the year. If your divorce is final by December 31st, the IRS still considers you unmarried all year. Report your filing status as single if a judge signed a decree of divorce or separate maintenance. However, you may be able to file as head of household despite a signed decree — which can decrease your income tax obligation. To be eligible for head of household status: You must have paid over half the cost of keeping up your home for the tax year; Your child must have spent more than half the year at your home; Your spouse must have lived elsewhere for over six months. read more at: http://www.divorce360.com/divorce-articles/finance/impact/five-tax-tips-for-divorcing-dads.aspx?artid=746
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