While divorce is rarely easy, it is often made even more complicated when there are substantial amounts of assets or money involved. These complexities can lead to months, or even years of legal wrangling since one mistake can literally cost a person millions of dollars.
Texas residents who divorced or were in the process of getting a divorce during 2012 may have many questions about how that life change will impact their annual tax filing this April 15. Divorce may impact things like filing status, dependents, and deductions. Here are some general guidelines for preparing your taxes following divorce.Although we are well into 2013, do not forget the relevant tax year is 2012. It is your marital status in 2012, in particular, your status on December 31, that determines your tax filing status now. If you were still married as of that date, you must file as married even if your divorce subsequently became final. You have two choices: married filing jointly or married filing single. Your attorney or tax advisor can help you determine which option is best for you.
Many Texas residents find the process of filing income tax returns fraught with confusion. An already challenging process becomes even more complicated by divorce, which changes one's filing status as well as the deductions and exemptions that may be claimed. Here are a few tips on how to approach your taxes if you are going through a divorce.To determine your 2012 filing status, the relevant date is Dec. 31, 2012. If you were still married on that date, even if the divorce was in process and you were living separately from your spouse, you and your spouse may use "married filed jointly" as your filing status. There are several advantages to this status, including favorable exclusion limits for the capital gain on the sale of your primary residence. One disadvantage is that you will be jointly liable with your spouse if there is an audit.