How to File Taxes After a Divorce In Colorado

Divorce is rarely an easy process, and most spouses breathe a sigh of relief when it’s over… at least until tax season, when filing questions often arise, plunging a newly divorced spouse back into the world of confusing legal considerations tied to their divorce.

A change in filing status complicates tax filing arrangements, especially when divorced spouses share children. How do you file taxes after a divorce in Colorado? Contact our family law firm in Denver for legal assistance on your unique case.

What Are the Filing Options After a Colorado Divorce?

A divorced spouse’s options for filing their taxes depend on the status of their marriage on December 31st of that tax year. The options for filing taxes include the following:

• If the divorce was finalized by December 31st, neither you nor your spouse may file as “married, filing jointly.”
• If the marriage wasn’t finalized by December 31st, you may still file as “married, filing separately.”
• You may file as single if the divorce was finalized by December 31st.
• You may file as head of household if a dependent lived with you and you paid for more than half of the household expenses during the tax year.

In other words, if the divorce was finalized by December 31st, you may file as single or as head of household, but if it wasn’t finalized until January of the new year, you must file as though still married until the following tax year.

Who Claims the Children as Dependents After a Divorce In Colorado?

When divorcing parents create a parenting plan as part of their separation agreement, or a judge issues a child custody order for shared parenting or primary custody and visitation, the plan typically includes directions for claiming the children as dependents. If the divorce order doesn’t include these instructions, the following IRS rules apply:

• In 50/50 custody arrangements with each parent contributing about equally to the child’s support, each parent may claim the child on alternate years
• If parents share 50/50 custody but one parent contributes substantially more to the financial support of the child, they may claim the child on their taxes for two out of every three years
• Parents with multiple children may divide the children as tax dependents; for example, claiming one child each if they have two children

It’s important to speak to your lawyer before filing your taxes after a divorce if the divorce agreement does not stipulate your filing terms. If there are significant changes in a parenting plan in any given year, it may have an impact on the way ex-spouses must file their taxes.

How Do Alimony Payments Affect Tax Filing In Colorado?

Beginning in 2019, the tax rules regarding alimony (spousal support or spousal maintenance) changed. For divorces finalized prior to 2019, the spouse who pays alimony may count their payments toward their tax deductions, and the spouse who receives the payment must claim the amount as income.

Spouses with divorces after 2019 follow the opposite rules under the new guidelines. The paying spouse may not deduct the amount they pay, and the receiving spouse does not have to claim the amount as income.

How Can a Colorado Divorce Lawyer Help?

The IRS rules for filing taxes after divorce are subject to change. It’s important to speak to your Colorado divorce attorney about including tax filing instructions in your divorce settlement agreement.

If your divorce is already finalized and you have questions about your filing status, speak to a Denver divorce lawyer to learn your legal rights and obligations.