It's difficult enough to think about taxes under normal circumstances. Finding yourself amid a divorce action can make this task even more daunting. A little planning, however, may ease this burden. Consider, for example, the following ideas about your tax filing status if your divorce wasn't final by December 31, 2007.

• Advantages of filing a joint tax return. It is often better, tax-wise, to file a joint return because of certain benefits that are available to joint filers. Benefits such as the earned income credit, the credit for the elderly, and certain other tax credits and deductions are reduced or unavailable for married taxpayers who file separate returns.

• Advantages of filing a separate tax return. Filing a separate return may make sense in a situation where your spouse isn't cooperating with you. This could especially be true if your bank requires a tax return before they'll approve a loan. Another reason for filing a separate tax return may be that you suspect that your spouse has unreported income. Filing separate returns in these situations may be a practical solution.

• Sometimes it makes sense to file a separate return because you'll owe less tax. An example is where medical expenses are not deductible because your joint income is too high. With a separate return, you may be able to claim a deduction.

The bottom line: You should calculate your tax liability under both joint and separate filing choices to see which results in a lower tax. Numerous other tax and financial issues could be affected by your divorce. If you'd like tax planning assistance, give us a call. We can work with your attorney to help you make informed choices that take taxes into account. 

For the assistance you need in minimizing your taxes this year and every year, contact us at (703) 370-0019 or email at taxtip@kahncpa.com. We are here to help.

Return to the top
 

• CHOOSING A TAX RETURN PREPARER
• CONSIDER YOUR TAX FILING STATUS WHEN PLANNING FOR DIVORCE
• TIMING MATTERS ON TAX LOSSES FOR WORTHLESS SECURITIES
• MAKE SURE YOU USE CORRECT SOCIAL SECURITY NUMBERS
• CHECK THE YEAR-END INFORMATION FORMS YOU RECEIVE 
• A TAX PROFESSIONAL GIVES YOU MORE THAN A TAX RETURN
• PROTECT YOURSELF WITH A TAX EXTENSION 
• ITEMIZING COULD SAVE YOU MONEY 
• PUT MORE DOLLARS INTO YOUR IRA
• PAY ATTENTION TO THE "NANNY TAX"
• GET A TAX CREDIT FOR CHILD CARE EXPENSES

Kahn, CPA PLLC
3343 Duke Street
Alexandria, VA 22314
703.370.0019
Fax: 703.997.4433
Information@KahnCPA.com