Filing taxes after divorce

Divorce can get complicated, especially for your taxes. If you’re wondering “how do I file taxes after a divorce,” there’s a lot to consider. Whether you’re dealing with a divorce, annulment, or legal separation, it can help to understand how your divorce decree is written. The more familiar you are with your agreement, the better you’ll understand how it affects your taxes.

As complicated as filing taxes after divorce and other similar events can be, we’re ready to walk you through some of the biggest things to expect regarding your taxes.

Filing status after divorce

First, you might be wondering what filing status to use if you just finalized your divorce. If your divorce was finalized before the end of the year, you can’t file a joint return for that year. However, you shouldn’t automatically file as a single person.

Here are some exceptions:

• You could qualify as Head of Household after a divorce if you’re providing a home for a child, which could lower your tax liability.
• If you divorce and remarry someone else by the end of the year, you can file a joint return with your new spouse. (Related: Marriage and taxes)

Head of Household after divorce

To qualify to file as head of household:

• You must be either unmarried or considered unmarried (see below) on the last day of the year.
• A qualifying person must have lived in your home for more than half the year. However, if the qualifying person is your parent, they don’t have to live with you.
• You must have paid more than half the cost of keeping up your home for the year.
• A qualifying person is someone that could be claimed as a dependent on your return. This includes your child, such as your son, daughter or grandchild, a qualifying relative such as your father or mother or any other relative that you can claim as a dependent.
• To be considered unmarried, all of these must apply:
• You must file a separate return.
• Your spouse must not have lived in your home in the last six months of the tax year. Your spouse is considered to have lived in your home even if they are temporarily absent due to special circumstances.
• You must have paid more than half the cost of keeping up your home for the year.
• Your home must have been the main home of your child, stepchild, or eligible foster child for more than half the year.
• You must be able to claim the child as a dependent. However, if the noncustodial parent is claiming the child since you signed Form 8332 (see below), you still meet this last requirement.

Who claims dependents after divorce

Which parent claims the child depends on the parents’ custodial or noncustodial status. The custodial parent is usually the parent the child lives with for more nights in the tax year. The other parent is the noncustodial parent. Taxes after divorce can get tricky, though, so continue reading to see the exceptions surrounding custodial and noncustodial parents.

If you’re the custodial parent, you can claim the child as a dependent. However, if the noncustodial parent has the custodial parent’s consent, they can claim the child tax credit, if applicable.

Form 8332: Custodial parent release

The custodial parent must complete Form 8332 to let the noncustodial parent claim the child’s tax benefits (i.e., Child Tax Credit, Credit for other Dependents).

Then, the noncustodial parent must attach one of these to the return to claim the child’s tax benefits:

• Form 8332
• Pages from a pre-2009 divorce decree covering the child’s dependent status for tax purposes

The custodial parent might still qualify as head of household and might be able to claim these tax benefits for that child:

• Earned Income Credit (EIC)
• Child and dependent care credit
• Exclusion for childcare benefits

The noncustodial parent can never claim:

• Head of household filing status
• EIC
• Child and dependent care credit
• Exclusion for dependent care assistance benefits

This applies even if the custodial parent released the dependent exemption.
Even if the decree clearly spells out custody, it usually can’t trump the divorce tax law definition of custodial parent. If there’s any confusion, the IRS might disallow the claiming rights of one of the parents.

Additional tax and divorce impacts

Alimony tax

Alimony payments made under divorce or separation agreements executed after Dec. 31, 2018, aren’t deductible by the spouse that pays them or taxable to the recipient. This also applies to modifications made to agreements executed on or before Dec. 31, 2018, if the modification expressly states that the Tax Cuts and Jobs Act (TCJA) applies.

Alimony from agreements executed before Jan. 1, 2019, are deductible by the payer, and taxable income to the person who receives it. Alimony is also known as spousal maintenance or spousal support. Both the payer and the recipient should have alimony payments clearly defined in the divorce agreement. That divorce agreement will help you understand the alimony tax impacts you’ll have.

If you pay alimony tax, you don’t have to itemize to deduct it. If you receive alimony, you might need to make estimated tax payments or increase your withholding on income you earn from your job. You’ll treat alimony as earned income to see if you’re eligible to make an IRA contribution.

A payment to a spouse under a divorce or separation agreement that happens after 1984 counts as alimony. This is true of your alimony for tax purposes if it meets these requirements:

• The payment is in cash.
• The agreement doesn’t say that the payment isn’t alimony.
• The spouses don’t file a joint return.
• The spouses aren’t members of the same household at the time the payments are made. If you and your former spouse used to share a home, you can’t divide the home into two living spaces to defeat that requirement. However, there is a one-month buffer period. Also, the payments might be treated as alimony — even if the spouses live in the same household — if both of these apply:
  • The spouses aren’t legally separated under a decree of divorce or separate maintenance. (Related Filing taxes when separated)
  • The payments are made under a written separation agreement or temporary support order.
• There’s no liability to make any payment — in cash or property — after the death of either spouse.
• The payment isn’t treated as child support. (Note: Child support isn’t deductible by the payer, and it’s not income to the recipient.)

IRAs and employer-provided retirement plans

As part of your divorce, you may have a Qualified Domestic Relations Order (QDRO) divides a retirement plan, like a 401(k) or pension, between a plan participant and an alternate payee (usually a spouse, former spouse, or child). 

This decree assigns them a portion of the benefits without triggering early withdrawal penalties or taxes at the time of transfer. It gives retirement plan administrators specific instructions on how to split funds for alimony, child support, or property division.  

Health insurance payments

Another tax impact of divorce on taxes is that it can affect some health insurance payments. This is true if you both:

• Bought health insurance on a state or federal health insurance marketplace
• Got an advance of the Premium Tax Credit for the insurance

You need to inform the marketplace of changes in your family structure, like divorce, marriage, adoption, or job changes. Those changes can affect your monthly payment.

Get help filing taxes with H&R Block

Whether you choose to file online or file with a tax pro, you can rest assured that you’ll get your max refund.

Filing after divorce FAQs

Can I get help filing after getting married or divorced?

Yes — you can get help filing taxes after a divorce or marriage. H&R Block can help you file taxes after divorce, making it easy to select a new filing status, completing your forms, and more.

Have questions? H&R Block tax pros help ensure you’re choosing the right filing status and completing all requirements correctly.

What filing status should I use after a divorce?

Your filing status after divorce generally depends on your marital situation as of December 31. If you were legally divorced by year‑end, you typically cannot file jointly — instead, you may file as Single or, if you qualify, as Head of Household after divorce. To use Head of Household status, you generally must have a qualifying dependent and pay more than half the cost of maintaining your home.

How does divorce affect claiming dependents on my tax return?

Typically, the custodial parent claims the child. However, the custodial parent may release the exemption to the noncustodial parent using Form 8332, allowing the other parent to claim the child‑related tax benefits such as the Child Tax Credit. A divorce decree alone is not sufficient — the IRS requires Form 8332.

Do I need to file differently if my divorce was finalized during the year?

Yes — if your divorce was finalized at any point during the tax year, the IRS considers you unmarried for the entire year. That means you cannot file jointly with your former spouse.

When you start your return the next tax year, you’ll need to determine the correct status — typically Single or possibly Head of Household if you meet the requirements.

Does divorce affect my retirement accounts or tax reporting?

Divorce can affect how you report retirement‑related income or distributions, especially if assets were divided under a divorce agreement. If retirement assets transfer under a Qualified Domestic Relations Order (QDRO), those distributions may have special tax treatment allowing you to avoid early withdrawal penalties.