Major life changes like a divorce, separation, or the death of a spouse can significantly impact your tax situation. If you experienced one of these events in 2024, your filing status, deductions, and overall tax refund will likely change. This guide explains the key tax implications you need to know for the 2024 tax year.
Determining Your Filing Status After a Divorce or Separation
Your marital status on the last day of the year, December 31, 2024, is what the IRS uses to determine your filing options.
- If you were still legally married on December 31st: You must file as either “Married Filing Jointly” or “Married Filing Separately.”
- If your divorce or legal separation was finalized by December 31st: You will file under a single status.
Filing as Single vs. Head of Household
If you are unmarried at the end of the year, you have two primary filing options:
- Single: This status applies to anyone who is divorced, legally separated, or was never married.
- Head of Household: This status offers more tax benefits than filing as single but has specific requirements. To qualify, you must:
- Have paid more than half the cost of keeping up your home for the year.
- Have had a qualifying child or dependent live with you in the home for more than half the year (except for temporary absences, like school).
Filing Taxes After the Death of a Spouse in 2024
If your spouse passed away during the tax year, your filing status depends on a few factors.
- For the 2024 tax year: You can still file a joint return with your deceased spouse. This is typically the last year you can do so.
- For subsequent years (2025 and 2026): You may be eligible to file as a Qualifying Surviving Spouse (also known as Qualifying Widow(er)). This status allows you to use the joint return tax rates and the highest standard deduction amount. To qualify, you must have a dependent child and have not remarried.
How to Claim Dependents After a Divorce
Deciding who claims the children as dependents is a critical part of filing taxes after a divorce.
- Divorce Decree: Often, the divorce or separation agreement will state which parent can claim the child.
- Form 8332: In cases where parents decide to share tax benefits, the custodial parent can sign IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, to allow the noncustodial parent to claim the child.
- IRS Tie-Breaker Rules: If the agreement is unclear or both parents claim the child, the IRS will apply “tie-breaker” rules. The parent who the child lived with for more than half the year will typically be allowed to claim the dependent.
