The information contained in this blog has been prepared strictly for informational purposes and is not intended to be used or relied on as tax, financial, legal, or accounting advice. For advice related to these subjects, you should be sure to consult with your local tax professional before making any decisions or engaging in any transactions.
Staying On Top of Your Financial Obligations
While many aspects of your life will change after a divorce, one certainty that will remain is your legal duty to pay your taxes each year. However, there are certain aspects of your taxes that will look different from when you were married. Here are some factors to keep in mind as you review your tax forms.
One of the changes that you may make after divorce is a change to your withholding status. Now that you are no longer married, you may wish to change your withholding to “single.” Doing so actually allows your employer to withhold more money from each paycheck, which has the potential of leading to a refund when it comes time to file your taxes in April. In order to determine if this is the best move for you, be sure to consult with your local tax professional before proceeding.
This is one change that you will have to make after a divorce. Since you are no longer married, you can no longer choose “married filing jointly” or “married filing separately” as an option for filing your income tax return; instead, you must file “single.”
While this might sound like an inconsequential change, it can actually have significant ramifications on your tax liability. Changing your filing status also changes what tax bracket you are in, and when comparing the tax brackets, one can note that individuals filing “single” (or “married filing separately”) may end up paying a larger percentage in income taxes than those filing “married filing jointly.” Be sure to consult with your local tax professional to better understand your options.
Ask Questions of Your Attorney
In order to ensure you are fully prepared for the many changes that will come to your life after divorce, you should consult with your attorney before making any big decisions. Their guidance can be a great help to you as you determine the best course forward. At Law Offices of Jonathan Merel, P.C., our team can help you gain a realistic set of expectations regarding life after divorce and can provide you with the guidance needed to make the best decisions for your future.
Learn more by calling us at (312) 487-2795 or by visiting our website.