Tax Filing Status After Divorce — What Changes and When
Divorce changes your tax situation immediately. Your filing status for the entire year is determined by your marital status on December 31 — even if the divorce was finalized on December 30. This single change can shift your tax bracket, affect your standard deduction, change your eligibility for credits, and alter how much you owe or get refunded.
Model how your divorce affects overall finances with the Divorce Financial Calculator.
Filing Status Options After Divorce
| Status | Requirements | 2026 Standard Deduction | Best For |
|---|---|---|---|
| Single | Divorced or legally separated by Dec 31 | $15,700 | Divorced, no dependents |
| Head of Household | Divorced + dependent child lives with you 6+ months | $23,500 | Custodial parents |
| Married Filing Jointly | Still married on Dec 31 (even if separated) | $31,400 | Couples divorcing in January |
| Married Filing Separately | Still married, filing apart | $15,700 | Protecting yourself from spouse's tax issues |
Head of Household is significantly better than Single: a higher standard deduction ($23,500 vs $15,700), wider tax brackets, and eligibility for credits that Single filers may not qualify for.
Head of Household: Who Qualifies
To file as Head of Household after divorce, you must meet all three conditions:
- Unmarried on December 31 (divorced or legally separated under a decree)
- Paid more than half the cost of maintaining your home for the year
- A qualifying dependent lived with you for more than half the year (usually your child)
If you share 50/50 custody, only one parent can claim Head of Household. The tiebreaker: the parent with whom the child spent more nights. If nights are exactly equal, the parent with the higher AGI claims.
Key Tax Changes After Divorce
| Tax Item | During Marriage | After Divorce |
|---|---|---|
| Filing status | MFJ or MFS | Single or HOH |
| Standard deduction | $31,400 (MFJ) | $15,700 (S) or $23,500 (HOH) |
| Child Tax Credit | Claimed by either/both | Only the custodial parent (or per agreement) |
| EITC eligibility | Based on joint income | Based on your income alone (may newly qualify) |
| Alimony (post-2018 divorce) | Not deductible/not taxable | Same — no tax impact for either party |
| Child support | Not taxable | Not taxable (no change) |
| Retirement account transfers | N/A | Tax-free if via QDRO or incident to divorce |
| Property transfers between spouses | Tax-free | Tax-free if incident to divorce |
Alimony Tax Rules: Pre-2019 vs Post-2018
The Tax Cuts and Jobs Act (TCJA) changed alimony taxation for divorces finalized after December 31, 2018:
| Divorce Finalized | Payer | Recipient |
|---|---|---|
| Before January 1, 2019 | Tax deductible | Taxable income |
| After December 31, 2018 | Not deductible | Not taxable |
If your divorce was finalized before 2019 and you're paying deductible alimony, do not modify the agreement in a way that could trigger the new rules — you'd lose the deduction.
Claiming Children After Divorce
The default IRS rule: the custodial parent claims the child as a dependent and gets the Child Tax Credit, Head of Household status, and related benefits.
However, the custodial parent can release the claim using IRS Form 8332. This is common in divorce agreements where the non-custodial parent has higher income and benefits more from the dependent exemption. The agreement might alternate years or assign specific children to each parent.
| Benefit | Follows the Dependent Claim? |
|---|---|
| Child Tax Credit ($2,000/child) | Yes — whoever claims the dependent |
| Head of Household status | No — only the custodial parent |
| Child and Dependent Care Credit | No — only the custodial parent |
| EITC | No — only the custodial parent |
Even if you sign Form 8332 to release the dependency claim, you can still file as Head of Household and claim childcare credits. Those benefits are tied to living with the child, not the dependency claim.
For the complete financial preparation approach, see Financial Planning for Divorce — Checklist. For understanding how retirement accounts are split, read Divorce and Retirement Accounts. And for the full cost picture, check Hidden Costs of Divorce.
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