Some years, filing your taxes might be relatively routine. However, life is always changing, and these changes can have a significant impact on the tax filing process, leading to new steps and statuses.
Getting a divorce can make the already stressful tax season even more complicated. When dealing with the life changes divorce brings, here is what you should do to prepare for the next tax season.
1. Consider: When was your divorce finalized?
The first thing to consider will be when the divorce went through. The date your divorce became official will be a deciding factor in your tax filings. After all, if you file 2025 taxes but only officially got divorced in 2026, the changes a divorce brings may not impact this tax filing. If that is the case, tax changes will come next year, with your 2026 filing.
2. Have all your documents ready
Even if a divorce does not impact this approaching tax season, it will be beneficial to keep your financial information organized. It helps to maintain a detailed inventory of your assets and liabilities during a divorce. However, after you divide your marital assets, it will be essential to create an updated inventory and obtain updated financial documents and statements as well.
Having these documents – including your past tax documents and returns – readily available to you can make the process easier.
3. Know what changes to expect
The Internal Revenue Service (IRS) provides a helpful guide to navigate the many changes that a divorce may bring to your tax filing, including:
- Changes in your filing statuses and deductions
- Documentation of asset transfers or divisions
- Abilities to claim dependents
Proactively reviewing this guide and even seeking professional counsel to fully understand what implications your divorce may have on your taxes is critical. After all, you never want to put your money at risk – and you certainly do not want to put anything up to chance while completing your North Carolina or federal taxes.
Preparing for your taxes may not be top of mind during your divorce. That is understandable, but it will be beneficial to keep your documents and finances organized so you can approach the changes divorce brings efficiently and confidently.