Depending on your income and tax bracket, the federal tax filing deadline is another issue to be concerned with in the midst of a contentious divorce. Essentially, tax issues can create a number of financial questions that must be resolved. Indeed, divorcees may divided on how an income tax refund should be divided, but they may be hopelessly deadlocked on who should be responsible for paying past due taxes.
Suffice it to say, finding solutions to these problems can be easier said than done when divorcing spouses are not on good terms.
Despite the emotional problems between divorcing spouses, deciding whether to file joint or separate tax returns is a critical consideration. On the one hand, filing a separate return could protect you from a spouse’s accounting issues. On the other hand, signing a joint tax return could be viewed as an acknowledgement that you knew about and understood all the information included in the return, even if you took no part in completing it. Such an acknowledgement could subject you to a host of legal issues.
Additionally, the tax breaks for those filing separate returns may not be as plentiful. Deduction amounts may simply be lower for single filers as opposed to married filers. Moreover, those choosing to claim “married filing separately” status may wind up being in a higher tax bracket. For instance, a single, unmarried person making $75,000 would likely fall into the 25 percent tax bracket, while a married person filing separately could see taxes levied at the 28 percent bracket.
So whether tax time is a time of great anticipation or a season of dread, speaking with an attorney with tax knowledge can be helpful.