The change in a person's relationship status, such as a legal separation or divorce, has an impact on their tax situation. For tax reasons, a couple is considered married until they receive a final decree of divorce or separate maintenance.
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When a person is divorced or separated from their spouse, they usually need to file a new Form W-4 with their employer to claim the proper withholding.
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Amounts paid to a spouse or a former spouse under a divorce decree, a separate maintenance decree, or a written separation agreement may be alimony or separate maintenance payments for federal tax purposes.
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For federal tax reasons, alimony or separate maintenance payments made to a spouse or former spouse under a divorce decree, a separate maintenance decree, or a signed separation agreement may be considered alimony or separate maintenance payments.
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A parent who has custody of a child can generally claim that child on their tax return. If parents share custody 50/50 but don't file a joint return, they'll have to pick who gets to claim the child.
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When property is transferred between couples, or between former spouses if the transfer is due to a divorce, there is usually no acknowledged gain or loss. It's possible that the transaction will need to be reported on a gift tax return.
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Divorcing couples who are still married at the end of the year are treated as married for the purposes of determining their filing status for the year. The IRS.gov tool What Is My Filing Status can assist users in determining which filing status is appropriate for their scenario.
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