Don’t let the IRS complicate your new beginning. A step-by-step guide to filing correctly after a major life change.
Divorce changes everything—your living situation, your budget, and yes, your taxes.
Navigating the financial side of a separation is difficult, especially when you are worried about making a mistake that could cost you thousands or cause legal friction with your ex-spouse.
At Elevate Financial TX, we have 13 years of experience helping families navigate the confusion of divorce. We created this checklist to help you gather exactly what you need so you can file with confidence and keep more of your hard-earned money.
The Checklist
1. Determine Your Filing Status
Your filing status is determined by your marital status on December 31st of the tax year.
- Divorced by Dec 31: You must file as Single or Head of Household (if you qualify). You cannot file “Married Filing Jointly.”
- Still Legally Married on Dec 31: You can choose Married Filing Jointly (usually best for deductions, requires cooperation) or Married Filing Separately (keeps liabilities separate).
- Head of Household Check: Did you pay more than half the cost of keeping up a home? Did a qualifying child live with you for more than half the year? (This status offers a higher standard deduction than “Single”).
2. Claiming Dependents (The Children)
This is the #1 source of tax confusion for co-parents.
- Review Your Divorce Decree: Check exactly who is assigned to claim the children for this specific tax year (e.g., “Father claims in even years, Mother in odd years”).
- Form 8332 (Release of Claim): If you are the non-custodial parent but your decree says you can claim the child, you MUST have a signed Form 8332 from the custodial parent attached to your return. The divorce decree alone is often not enough for the IRS.
- Child Care Expenses: Gather receipts for daycare or after-school care. Only the custodial parent (who the child slept with the most nights) can typically claim this credit, even if the other parent pays for it.
3. Support Payments (Alimony & Child Support)
- Child Support: Note that child support is tax-neutral. It is not deductible for the payer, and it is not taxable income for the receiver.
- Alimony/Spousal Maintenance:
- Divorce finalized AFTER Dec 31, 2018: Alimony is not deductible for the payer and not taxable for the recipient.
- Divorce finalized BEFORE Dec 31, 2018: Old rules may apply (deductible for payer/taxable for recipient). Bring your original decree.
4. Assets & Property Division
- Did you sell the family home? If you sold a home, bring the closing documents. You may qualify for a capital gains exclusion ($250k single / $500k married), but the timing matters.
- Retirement Splits (QDRO): If you received a portion of your ex-spouse’s retirement account via a Qualified Domestic Relations Order (QDRO), bring the paperwork. If you rolled it over into your own IRA correctly, it shouldn’t be taxable yet.
- Name Change? If you changed your name back to your maiden name, ensure you have notified the Social Security Administration before filing taxes. The name on your tax return must match your SSN card exactly.
5. Texas Specifics (Community Property)
- Allocating Income: Texas is a community property state. If you were married for part of the year, income earned during that time may technically be considered “community income.” Bring all W-2s for both parties if you are filing “Married Filing Separately” to ensure income is allocated correctly.
Red Flags: When to Call a Pro
- You and your ex-spouse are not on speaking terms regarding who claims the kids.
- You own a business and are unsure how the divorce impacts your business assets.
- You received a frightening letter from the IRS about a past “Joint” return.
Need Help? We Don’t Judge.
You don’t have to figure this out alone. Whether you have a shoebox of receipts or a complex custody arrangement, Elevate Financial TX offers professional, judgment-free help at a flat rate.
Our “Fresh Start” Rates:
- Individual/Single: $149.99
- Self-Employed: $249.99
- Bookkeeping Cleanup: $49/hr