Filing joint taxes may be the best option during a divorce

Even though a martial break up is forthcoming in the near future, couples who are still legally married may continue to file joint tax returns. There are several factors to consider whether this is the best option for those who are soon to be divorced. In Georgia and other states, couples in the process of a divorce but who are still married at the end of the year may file together.

Filing tax returns separately or individually can mean losing out on substantial deductions and tax credits reserved for married or joint filers. Single filers may not be eligible for credits such as the Earned Income Tax Credit. Those who file separate returns could face higher tax rates and will face cuts to the Alternative Minimum Tax than those who file joint returns.

It may be in the best interest of some married couples to file separate income tax returns. Those who incurred high out-of-pocket medical expenses may benefit from filing separately. Couples who have a wide income gap can file separate returns to meet the 7.5 percent threshold and deduct expenses. It may be wise to consider doing a trial run to determine which path will be the most economical and simpler choice.

Divorce creates a host of changes, and taxes are no exception. Couples may want to consult with a tax professional to weigh the options available to them and to determine which filing status will be the most economical for their situation. In Georgia, those who are struggling or have questions regarding financial changes associated with divorce may contact an attorney to guide them through the process.

Source: wbrc.com, "Should couples file taxes jointly or separately?", Feb. 21, 2018

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