Which filing status to use after divorce
| Marital Status on Dec. 31 | Filing status options |
|---|---|
| Divorce finalized | Single or Head of Household (if you qualify) |
| Still legally married | Married Filing Jointly or Married Filing Separately |
Source: Internal Revenue Service
Who claims the kids after divorce
Generally, only the custodial parent, the one the child lived with for more nights during the year, can claim a child as a dependent. A noncustodial parent can claim the child only if the custodial parent signs Form 8332 releasing that claim. The IRS’s tie-breaker rules settle disputes when both parents try to claim the same child.
How alimony and child support are taxed
If your divorce was finalized after 2018, alimony is neither deductible for the person paying it nor taxable to the person receiving it. Agreements finalized on or before December 31, 2018 that haven’t been modified since may still follow the old rules, where the payer can deduct the alimony and the recipient must report it as income.
Child support is never deductible for the payer and never taxable to the recipient.
Updating your W-4 after a divorce
Once your divorce is final, you should submit a new Form W-4 to your employer to reflect your new filing status and any change in dependents. Updating it promptly helps you avoid under- or over-withholding, which could leave you owing money you didn’t expect at tax time or having too much taken out of your pay each week. You should also revisit your state withholding forms if your state has its own version.
Other tax details to update: name, address, and withholding
If you legally changed your name after the divorce, you’ll need to update it with the Social Security Administration (SSA) before you file, since your tax return name needs to match SSA records. You’ll also need to update your address with the IRS and your employer if you moved.
