Divorce or Loss of a Spouse Can Change Your Tax Filing

Major family changes can have a significant impact on how taxpayers file their taxes.

Divorce or legal separation may affect filing status, tax withholding, dependents and eligibility for certain credits and deductions. Changes in income and filing status may also mean a taxpayer needs to update their Form W-4.

The death of a spouse or another family member can create additional tax considerations. In general, a final individual income tax return for a deceased person should be filed as though the person were still alive. Income earned up to the date of death should be reported, along with any eligible credits or deductions.

These situations can be complicated, making it especially important to keep accurate records and review tax information after a major life event.

The IRS recommends that taxpayers review their withholding, update personal information and maintain important records following major life changes.

Rather than waiting until tax season, taxpayers experiencing divorce, legal separation or the death of a loved one should take time to understand how the change may affect their tax filing and responsibilities.