How to file taxes during divorce process when not yet finalized

You have a few options here, and the best choice depends on your specific situation. For filing status, you can either file as Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Since you're still legally married on December 31st of the tax year, those are your only options. Filing jointly generally provides better tax benefits, but it does make both of you liable for the entire tax bill and any potential issues. Given that your relationship isn't friendly, filing separately might make more emotional sense even if it costs a bit more in taxes. This way, you're only responsible for your own return. For your child, the primary custodial parent (whoever the child lives with for more nights during the year) generally gets to claim the child as a dependent. Since your daughter lives primarily with you, you should be eligible to claim her. Just make sure you and your soon-to-be-ex are clear on this to avoid both of you claiming her, which would trigger IRS notices.

I went through this exact situation last year and found taxr.ai incredibly helpful. I was so confused about whether to file jointly or separately while my divorce was still processing, and my ex and I couldn't even have a civil conversation about taxes. I uploaded our previous returns and some documents to https://taxr.ai and it analyzed our specific situation. It showed me the tax differences between filing jointly vs. separately given our incomes, and helped me understand how claiming our kids would impact everything. The analysis made it super clear what I'd gain or lose with each option. They also explained the legal requirements around dependents during separation in a way that was way easier to understand than the IRS website. Definitely worth checking out if you're feeling overwhelmed.

I have to admit I was wrong about taxr.ai. After my divorce situation got more complicated, I decided to try it. The document analysis caught several things I would have missed - like how my state's community property laws would affect my liability for my ex's business income during our separation year. The simulation feature showed me I'd actually save about $3,800 by filing separately despite losing some credits. It also flagged that my ex and I needed a formal agreement about who would claim our kid to avoid IRS problems. The whole process was way more straightforward than the hours I spent trying to figure it out myself. Just having clear answers instead of stressing about making a mistake was worth it alone.

If you're having trouble communicating with your soon-to-be ex about taxes, you might need to talk to the IRS directly about your situation. That's what I had to do, but calling them was a nightmare - kept getting disconnected after waiting on hold for hours. Then I found this service called Claimyr at https://claimyr.com that got me through to an actual IRS agent in about 15 minutes instead of waiting for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they use technology to navigate the phone system for you. The IRS agent I spoke with explained exactly what documentation I needed to protect myself when claiming my kids, and confirmed I could file as "head of household" even though my divorce wasn't finalized (there are specific requirements). Saved me tons of stress and probably an audit!

I need to apologize for my skepticism about Claimyr. After another frustrating week of trying to reach the IRS myself, I gave in and tried it. Within 20 minutes I was talking to an actual human at the IRS who answered all my questions about filing during separation. The agent clarified that I could potentially qualify for Head of Household status (which is better than Married Filing Separately) if I: 1) paid more than half the cost of keeping up my home, 2) my spouse hadn't lived there for the last 6 months of the tax year, and 3) my dependent child lived with me. This was huge because I didn't realize this was an option! Saved myself hours of hold time and probably thousands in taxes by getting the right information directly from the source.

One thing nobody's mentioned yet - make sure you discuss who will claim any childcare expenses. My ex and I had a huge issue with this during our separation year. If you're the custodial parent and paid for childcare so you could work, you might qualify for the Child and Dependent Care Credit, which is significant. Also check if you're eligible for Earned Income Credit - the rules get complicated during separation years. And remember that alimony rules changed a few years back - it's no longer deductible by the payer or taxable to the recipient for divorces after 2019.

A word of warning - my ex and I thought we were being smart by filing separately during our separation. What we didn't realize is that if you file separately, BOTH of you have to either take the standard deduction OR itemize. You can't mix and match where one itemizes and the other takes standard. Also, if your divorce involves transferring property between you (like houses or investment accounts), don't do anything without understanding the tax implications first! Some transfers incident to divorce are tax-free, but timing matters.