24 Feb Tax Changes to Consider After Divorce
The old saying goes that one of the only things you can be certain of in this life is taxes. As you go through life, your tax bracket and tax status may change. Changes in income change your tax bracket and how much gets taken out of your paycheck. Life changes – such as getting married and having kids – change your tax status. Getting divorced is one such change.
When it comes to taxes, consulting an accountant is important to ensure that you are filing everything correctly. Family law attorneys also know how the divorce will affect your tax filings. Navarrette Bowen P.C. has a team of experienced divorce attorneys in downtown Denton to help you through the process.
The biggest change is how your taxes get filed. As a single person, you file under “single.” This is the box you check again once you are divorced.
Previously, married couples can claim tax benefits by as married filing jointly or married filing separately. The tax brackets for those married filing jointly are double compared to those filing single. This means that going to the “single” brackets could increase or decrease one’s tax liability. The standard deduction is also lowered. As a single person, you may see an increase in your taxable income. This all depends on your unique financial circumstances.
For anyone working a W-2 job, taxes get taken out of your paycheck. Single filers have more money taken out of their paycheck throughout the year unless they dictate otherwise. When it comes time for tax season, single filers are more likely to get a higher refund back than those filing jointly. Note that anyone who works as an independent contractor will still need to save parts of their paycheck to pay all income tax during tax season.
Consult The Professionals
Taxes can lead to a myriad of confusion, especially if your status is changing. Whether or not you have children as your dependents also affects what is going to happen with your taxes when you get divorced. The divorce can cause other differences – for example, if you no longer own a home after the divorce but are renting, you may no longer be paying property taxes. If your home is smaller, it could be less. Many things can change financially after a divorce within your taxes. Consulting an accountant is the best way to make sure everything is getting filed correctly. If you want an idea of how things might shift after the process, you can ask your attorney.
Navarrette Bowen P.C. has a team of experienced divorce attorneys in downtown Denton who can help guide you through the divorce process and provide an overview of what to expect. However, it’s important to note that this blog post is not tax advice. It’s recommended that you consult with a tax professional for specific advice regarding your tax situation during a divorce.
If you are in the Denton area and are in need of a divorce attorney, please contact Navarrette Bowen P.C. today to set up a consultation.