Divorce and legal separation are never just an emotional split for married couples — it also changes your entire financial picture, including how you file your tax return. If you recently separated or finalized a divorce, you may be wondering what your tax filing responsibilities look like now. If you are separated, how do you file taxes? Do you file as single? Can your ex claim your child? What are the tax laws on alimony or child support payments?
This guide will walk you through how to file taxes after divorce, explain the IRS divorce rules and tax implications, and help you avoid common missteps so you can confidently handle filing your first tax return post-separation.
Tax help during divorce
Mixing divorce and taxes can get complicated, but you don’t have to go it alone. Here are some ways TaxAct® can help you file with confidence:
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Filing taxes after divorce: What’s my filing status?
First things first: Your filing status is based on your marriage status as of Dec. 31 of the tax year. Your filing status is a big deal because it determines which tax bracket you fall into as a taxpayer and what tax deductions you’re eligible to claim.
How to file taxes if divorced mid-year
According to IRS divorce rules:
- You’re seen as married for tax filing purposes until you get a final decree of divorce or separate maintenance.
- If you’re legally divorced or separated by the last day of the year, the Internal Revenue Service sees you as unmarried for the entire year (even if you spent most of the year married).
For example, if your divorce was finalized in November 2024, the IRS considers you unmarried for the entire 2024 tax year. That means you can no longer file jointly with your ex. Instead, you’ll likely file as single, or head of household if you meet the requirements (more on that soon).
State rules may differ slightly, so it’s important to check both federal and state guidelines.
Filing status options based on your situation
If you are filing taxes when separated (but not legally separated or divorced) at the end of the year, your filing options are:
- Married filing jointly
- Married filing separately
- Head of household (if you qualify)
If you are legally separated or divorced at the end of the year you can file as:
- Single
- Head of household (if you qualify)
If you are legally married at the end of the year:
- Married filing jointly
- Married filing separately
- Head of household (if you qualify)
Now let’s break down each of these filing statuses and look at how they may affect your tax liability.
Filing as single after your divorce is final
Once your divorce is finalized, single becomes your default filing status, unless you qualify for head of household. Filing your tax return as single means a lower standard deduction and possibly a higher tax rate than when you were married filing jointly.
For reference, here are the standard deduction amounts for the 2025 tax year based on tax filing status:
- Single: $15,000
- Head of household: $22,500
- Married filing jointly: $30,000
Qualifying for head of household status
If you meet the criteria, head of household status can help lower your tax bill. It comes with a higher standard deduction and more favorable tax brackets than filing as single. To qualify, you must:
- Be unmarried as of Dec. 31.
- Have a qualifying dependent (like your child) living with you for more than half the year.
- Pay more than half the cost of housing and support for the qualifying dependent.
Custody paperwork and other divorce documentation can help prove you’re eligible for this filing status, so be sure to keep these documents in a safe place in case you need them!
Can I file as head of household even if I’m not legally separated or divorced?
Even if you’re technically married but living apart, you might still qualify for head of household status if you meet all the following eligibility requirements:
- Lived apart from your spouse for the last six months of the year.
- Paid more than half the cost of maintaining your home.
- Had a qualifying dependent living with you for more than half the year.
Again, in these cases, solid documentation — like a separation agreement or proof of separate households — is essential in case the IRS asks.
Using married filing separately during separation
Remember, if you are separated but your divorce isn’t finalized by year-end, you’re still considered married in the eyes of the IRS.
If you don’t qualify for head of household status, filing a separate tax return from your spouse may be a good idea if you want to keep your finances separate and claim your own tax refund. But it could also mean missing out on valuable tax deductions and tax credits like the Earned Income Tax Credit.
Occasionally, you might pay less by filing separate tax returns, especially if one spouse has deductions that are limited by a percentage of income, such as high medical expenses. For more help on this topic, check out I’m Married, What Filing Status Should I Choose?.
If you’re unsure, you can enter the numbers both ways in TaxAct to find out which filing status results in a total lower income tax bill.
Claiming dependents after divorce
Figuring out who gets to claim the kids after divorce can get tricky. The tax benefits for parents, like the Child Tax Credit, can make a big difference in how much tax you pay, so it’s important to get it right.
Who can claim a dependent child on taxes after a divorce?
The custodial parent, meaning the one the child lives with for the majority of the year, usually gets to claim the child. That opens the door to tax credits like:
- The Child Tax Credit
- The Child and Dependent Care Credit (for qualified childcare expenses)
- The Earned Income Tax Credit
If both parents want to claim the child, the custodial parent can release their claim using IRS Form 8332.
If you’re not the custodial parent, irs.gov has a cheat sheet for non-custodial parents and what tax breaks they can and cannot claim, including the Child Tax Credit.
How custody arrangements affect claiming dependents
Custody schedules matter to the IRS. In joint custody situations, whoever has the child more nights in the year gets designated as the custodial parent and usually gets to claim the child, unless otherwise specified by Form 8332.
Using Form 8332
Form 8332 allows the custodial parent to give up the dependency claim for a specific year (or permanently) so the noncustodial parent can claim it. Once this form is signed and submitted, it’s official. If you are the custodial parent and want to revoke it, you’ll need to fill out a new form and give written notice.
Parents sometimes agree to switch off on claiming dependents each year. Remember, the IRS loves documentation — if you do this, make sure the arrangement is also spelled out in your divorce decree or another legal document.
How alimony and child support affect your divorce tax filing
Alimony and child support might sound similar, but the IRS treats them very differently. Here’s how it breaks down.
Tax treatment of alimony payments under current law
The Tax Cuts and Jobs Act made some changes to alimony taxes. For divorces finalized on Jan. 1, 2019, or after:
- Alimony is not deductible for the person paying it.
- Alimony is not considered taxable income for the person receiving it.
Alimony taxes for divorce agreements dated before 2019
If your divorce was finalized on or before Dec. 31, 2018, the old rules still apply:
- The payer can deduct alimony (even if you claim the standard deduction and don’t itemize).
- The recipient must report it as taxable income. You may also need to make estimated tax payments or increase your withholding on other income to cover alimony taxes.
Child support taxes
Unlike some alimony payments, child support:
- Is not deductible for the payer.
- Is not taxable for the recipient.
You don’t need to report child support on your individual income tax return at all, either as the payer or recipient.
Asset and property transfers
Splitting up assets is a huge part of divorce, and it could have tax consequences, especially if you sell anything down the road.
Tax-free transfers between spouses after divorce
Transfers made under a divorce settlement are usually non-taxable, as long as they meet IRS rules. But here’s the catch: The person receiving the property also takes on the tax basis (original value) of the person giving it. That matters if you sell it later and need to calculate capital gains.
Understanding the tax basis of transferred assets
The tax basis is what you originally paid for the property, plus any improvements or minus depreciation. It determines how much of your profit from a future sale is taxable as a capital gain. Make sure you know your basis before you make any big financial moves post-divorce.
Selling your home and capital gains exclusions
What about the mortgage? If you sell the marital home after divorce:
- Single filers can exclude up to $250,000 in capital gains.
- Typically, you must have owned the home for at least two years and lived in it as your primary residence to qualify for this. In the event of divorce, you may qualify for a reduced exclusion if you don’t quite meet the two-year test.
This means that if you sell your home after the marriage ends, both you and your ex-spouse can each exclude up to $250,000 in capital gains from the sale on your individual tax returns. If you received the house in the divorce settlement and sell it years later, you can still exclude up to $250,000.
Dividing retirement accounts
If you’re splitting retirement accounts, you’ll likely need a Qualified Domestic Relations Order (QDRO) to do it right. This court order recognizes that your former spouse is entitled to receive a certain amount of your retirement plan.
For example, if you cash out half of your 401(k) to give to your ex during a divorce settlement, you would be responsible for paying all applicable taxes on that distribution. A QDRO tells the IRS that your spouse has rights to those funds, so the tax burden for cashing out doesn’t fall on your shoulders.
IRAs are a bit different. You don’t need a QDRO for an IRA, but it’s a good idea to ensure the IRA transfer is listed as a non-taxable distribution in the divorce agreement.
Dividing business assets
If you or your spouse owns a business, division can get complicated. You’ll need to determine fair market value and consider how equity transfers affect your capital gains down the line. In this scenario, it’s a good idea to work with experts like a financial advisor or tax professional to stay on track.
Adjusting tax withholding after separation
Your life post-separation may mean new tax obligations. But don’t wait until filing season! It’s a good idea to update your tax withholding as soon as possible.
Submitting a new Form W-4 to your employer
After a divorce, you’ll need to fill out a new Form W-4 to reflect:
- Your new filing status
- Changes in dependents
- Any other shifts in income
This ensures your employer withholds the right amount of federal income tax from your paychecks based on your new tax situation.
How to fill out Form W-4 after divorce
Not sure how to fill out your W-4 form? TaxAct’s Refund Booster* (W-4 Calculator) can help you with that. Just plug in your income, filing status, and dependents, and let us know if you want a bigger refund or more money in your paychecks throughout the year. Based on your answers, we’ll fill out a new Form W-4 that you can give to your employer at any time.
Other tax tips when getting divorced
- Make sure your name matches your Social Security number: If you changed your name after the divorce, make sure to update it with the Social Security Administration (SSA) before you file. The IRS checks the name on your tax return against SSA records, and a mismatch can delay your tax refund.
- Update your address with the IRS and financial institutions: File Form 8822 to let the IRS know where to send correspondence and tax refunds. Also, update your address with banks, employers, and anywhere else that affects your taxes.
- Split shared accounts and check who’s receiving tax forms: If you shared a brokerage or savings account with your ex-spouse, you’ll both still receive tax documents unless you update the ownership. Keep an eye on any 1099 forms or other tax documents so you don’t miss reporting any income.
- Save everything: Keep copies of all agreements, forms, receipts, and correspondence — even if you don’t think they’re important! A well-organized paper trail can save you headaches when filing your federal tax return down the line.
FAQs
The bottom line
Filing your tax return after a divorce or separation means getting used to a new filing status, but don’t stress about it too much. By understanding your new filing status, sorting out dependent claims, handling support payments correctly, and updating your tax withholding, you’ll be set up for smoother tax seasons ahead. And if things feel a little too complicated? TaxAct is here to help — our tax preparation software will guide you through the tax return filing process step by step.
