The timing of a divorce decree can make a big difference in the parties' federal income tax liability because their filing options are determined by their marital status at the end of the tax year.
'How Should I File My Taxes?'
The timing of a divorce decree can make a big difference in the parties' federal income tax liability because their filing options are determined by their marital status at the end of the tax year. Under federal tax law, taxpayers who were married for 364.5 days but had their divorce decree entered on the afternoon of Dec. 31 are deemed to be single for that tax year. Parties whose divorce decree is entered on the first business day of the new year are married for purposes of filing the previous year's tax returns. Similarly, parties who are divorced or otherwise single during the year who remarry on Dec. 31 are married for purposes of filing their tax returns for that year. Parties who are still married and not judicially separated are married for purposes of filing their tax returns no matter how long they have been separated. IRC '' 6012-6013. It is important to give consideration to the client's filing options because filing status can produce considerable variation in the tax bill on the same income.
By
Joanne Ross WilderThis premium content is locked for LawJournalNewsletters subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.
