The question frequently arises this time of year when a couple is going through a divorce: “How do we file our taxes this year?” It is important to know that for two individuals to file a joint return, they must have been married on December 31 of the year for which the return will be filed. If the parties are divorced before December 31, they are no longer considered married and cannot file a joint return. Most are aware that married filing joint is one of the most financially beneficial tax rates and will often reduce overall tax liability. However, sometimes the couple cannot agree on the issue to file jointly and elect to file separate returns. It is imperative that you discuss this matter fully with your attorney and your financial advisor before deciding which course to pursue.
For more information on family law related issues, please contact Shannon Simpson at Simpson Legal Group, LLC today at (712) 256-9899.