What Is My Filing Status?

• You may wonder which marital status to file under. Some people are under the misconception that if they were married more than half the year, they can file a joint tax return. According to the Internal Revenue Service (IRS), you cannot file a joint return unless you are still married as of December 31. If you are still married, you may choose to file a joint married return or separate married return.
  
  

Are There Tax Consequences on Transferred Property?

• The property transferred between spouses in a divorce does not usually incur tax consequences. The exception is property transferred to a third party or trust. The property may then be subject to taxes. Tax consequences can also occur if the transferred property is used for a different purpose than before. For example, a business vehicle that becomes a personal vehicle can no longer be deducted on a tax return.
  
  

Who Can Claim the Children?

• The parent who has custody of the child is entitled to claim the child as a dependent and receive the tax credit. A custodial parent is also eligible for the child-care credit. If your divorce agreement does not establish who has custody, you can use the IRS guidelines to determine who can claim the child. The IRS states that the parent who has physical custody of the child for more than half the year and provides more than half the financial support is entitled to claim the child.