Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Esteemed Pioneer
Posts: 11
Registered: ‎03-04-2015
Accepted Solution

Shared Income after Divorce

I got divorced in Oct.  I was paying for all expenses for the year till then.  As per the order, I claim kids and all mortgage etc.  I also paid alimony for the last few months.  Due to divorce, I believe I can only file as head of household but can claim some of the income jointly.  How do I claim :

1)  Half of the interest income till Oct.

2)  As head of household, can I claim her as dependent as she has been with me most of the year ?  If so where ?

3)  As she has no other income, the total even after above is < standard ded.  Does it mean she doesn't need to file ?  If so, do I need to file something to update IRS ?

 

Thanks

Tax Pro
Posts: 5,351
Registered: ‎02-23-2016

Re: Shared Income after Divorce

Hi kkhr2014,

 

Welcome to the H&R Block community.

 

The only way you would be able to claim an ex-spouse as a dependent is if she lived with you for the entire year AND made less than $4,050.  This would qualify her as your qualifying relative who is not related to you but met the alternate requirement of residing with you for the whole year since you obviously paid more than 50% of her support costs.

 

Your ex-spouse does not need to file a tax return unless she had withholdings to claim a refund of.

 

The income is an interesting question.  If the interest is the only joint income you have it would have to be entered manually on Schedule B in order to split it up.  The way I would suggest doing it though is if there is some other joint income then one of you claim one of the joint incomes and the other one of you claim the interest and that way you can enter it exactly as shown on your tax forms.

 

You do not need to file any kind of update with the IRS.  The IRS receives copies of all of your tax forms from the employers and other companies that issue them eventually so they will know that she doesn't have a filing requirement.

 

If you have any other questions I'll be glad to help.

 

Louis,
Senior Tax Advisor (Tampa, FL)

Esteemed Pioneer
Posts: 11
Registered: ‎03-04-2015

Re: Shared Income after Divorce

I need a few clarifications, though this resolved the main issue.

 

The income you mention of $4050, is it inclusive of the alimony ?  How will this be known as she will not file with income <10K (I guess 10350) ?

 

The joint income though a small part is interest, is mainly capital gains.  I believe we can share on the positions closed before final judgement,  How do I share as the IRS report will contain all gains attributed to me.  Should I add a few lines to schedule D to indicate loss as half the gains on joint income ?

 

Thanks