Tax responsibilities are significantly impacted by one's marital status, and delaying a divorce until the beginning of a new year can provide relief from associated tax challenges. In most cases, even if a couple remains married for just a day in a given year, they still have the option to file taxes jointly as a married couple. Divorce is emotional, and it can be stressful, especially during the holidays. At Powers and Kerr, PLLC, a high-asset Texas divorce attorney can help you understand the tax implications so that you can make an informed decision.
What If I Am In The Middle of The Divorce?
If the divorce is not final yet, you may be able to file a joint tax return even if you and your spouse no longer live together. This could be helpful because it allows you to qualify for a bigger standard deduction when you put both your incomes together on one tax return.
However, you could be liable for all taxes due, even on income that your spouse earned, no matter if it is higher than yours. Therefore, couples filing tax returns are better off staying married until December 31 of a tax year to take advantage of the Married Filing Jointly status.
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