What to Know About Filing Your First Tax Return Post-Divorce
Hi, I’m Tim Blankenship with Divorce661. Filing your first tax return after a divorce can feel confusing—and costly if you don’t get it right. Your filing status, who claims the kids, and how support payments are treated for tax purposes can all change. Below I walk through the key things you need to know, common pitfalls I see with clients, and a clear checklist so you can file confidently.
How Your Filing Status Is Determined
Your filing status is based on your marital status on December 31 of the tax year.
- If your divorce was finalized by December 31, you’ll file as single or possibly head of household if you meet the requirements (more on that below).
- If your divorce wasn’t final until the following year, you are considered married for that tax year and must file either married filing jointly or married filing separately.
Head of Household — when you might qualify
You may qualify for head of household if all of the following are true:
- You are unmarried on December 31.
- You paid more than half the cost of keeping up your home for the year.
- A qualifying person (usually a child) lived with you for more than half the year.
Head of household status generally gives a better standard deduction and lower tax rates than filing single, so check the requirements carefully.
Who Gets to Claim the Children as Dependents?
Who claims the kids is often spelled out in your divorce judgment or settlement. If it’s not, the IRS will default to the parent with whom the child lived the majority of the year.
- You cannot both claim the same child on your tax returns. If you do, that will trigger an IRS review and can delay processing.
- If the judgment allocates dependency exemptions, follow the court order and keep documentation showing custody/time with the child.
- For children who split time evenly, the judgment or a written agreement should clarify which parent claims credits like the Child Tax Credit or the Earned Income Tax Credit.
Spousal Support vs. Child Support: Tax Treatment
Understanding how support payments affect taxes is one of the biggest areas of confusion.
- Child support is not taxable to the recipient and not deductible by the payer.
- Spousal support (alimony) is treated differently depending on when the divorce agreement was finalized. For agreements executed after December 31, 2018, alimony is not deductible for the payor and not taxable to the recipient under current federal rules. For older agreements, different rules may apply.
Because many people expect alimony to be tax-free for the recipient (or deductible for the payer), misunderstandings here can lead to unexpected tax bills.
Common Surprises and How to Avoid Them
I frequently see clients surprised by tax obligations they didn’t anticipate. Here’s a real example and practical steps to avoid that situation.
We worked with a client who didn’t realize she had to report her spousal support as income. She was caught off guard when she owed taxes in April. After that, we helped her set up quarterly estimated payments so she wouldn’t be surprised again the next year.
How to avoid surprises:
- Read your divorce judgment for tax language about support and dependency claims.
- Adjust your W-4 withholding or set up quarterly estimated tax payments if your withholding no longer covers your tax liability.
- Keep clear records of custody time, support received, and support paid—these can matter for credits and audits.
Practical Checklist: Get Organized Before You File
Use this checklist to prepare your first post-divorce tax return:
- Confirm your filing status based on your divorce finalization date (Dec 31 cutoff).
- Locate your divorce judgment/settlement and note any language about who claims dependents or how support is treated.
- Gather income documents: W-2s, 1099s, statements showing spousal or child support received or paid.
- Update your employer and payroll withholdings (W-4) if needed.
- Determine whether you qualify for head of household and prepare to document household expenses and the child’s residency.
- If you expect a tax bill, set up quarterly estimated payments or increase withholding to avoid penalties.
- Keep copies of court orders and custody schedules with your tax records.
When to Get Professional Help
Many post-divorce tax situations are straightforward, but you should consult a tax professional if:
- Your divorce judgment has complex tax language about dependency exemptions or credits.
- You receive or pay significant spousal support and are unsure of the tax treatment based on your agreement date.
- Your custody arrangement is shared or changes mid-year and you need to establish who claims the child.
- You have business income, multiple 1099s, or unusual deductions that complicate your return.
At Divorce661 we help clients understand these real-life changes and can refer you to tax professionals who specialize in post-divorce filings if your case is complex.
Conclusion
Filing your first tax return after divorce doesn’t have to be overwhelming. Start by confirming your filing status, review your divorce judgment for tax-related clauses, decide who will claim the children, and address support payment tax treatment. If you’re unsure, don’t wait until tax day—get organized now so you won’t be surprised.
If you’re getting ready to file and want help getting organized or avoiding common mistakes, visit Divorce661.com to schedule a free consultation. We’ll help you plan ahead so tax time is one less thing to worry about.
