What are my filing status options during the year of my divorce?

There are several options for how to file during the years before your divorce (when you may be separated) and for the year your divorce becomes final. In your pre-divorce year(s), you have the option of filing under the following statuses:

• Married Filing Jointly
• Married Filing Separate
• Head of Household

There are advantages to each status depending on your financial situation.  For example, although there is a marriage tax penalty when filing married jointly, there are also some deductions which you can take when filing married jointly that you cannot take if filing separately.   If you are concerned about liability for your spouse's tax mistakes, you may wish to consider filing married filing separate.  Head of household is only available under certain strict requirements.  See the book for further explanation and examples.

If you are divorced on December 31, you must file either Single or Head of Household.  There may be a tax advantage to timing the divorce to happen after year-end.