Does the irs know when you get divorced

See also:  IRS Publication 504 Divorced or Separated Individuals.

Include a Few Tax Items in Your Summer Wedding Checklist

If you're preparing for summer nuptials, make sure you do some tax planning as well.  A few steps taken now can make tax time easier next year.  Here are some tips from the IRS to help keep tax issues that may arise from your marriage to a minimum.

• Change of name.  All the names and Social Security numbers on your tax return must match your Social Security Administration (SSA) records.  If you change your name, report it to the SSA.  To do that, file Form SS-5 Application for a Social Security Card.  The easiest way for you to get the form is to download and print it on SSA.gov.  You can also call SSA at (800) 772-1213 to order the form, or get it from your local SSA office.

• Change tax withholding.  When you get married, you should consider a change of income tax withholding.  To do that, give your employer a new Form W-4, Employee's Withholding Allowance Certificate.  The withholding rate for married people is lower than for those who are single.  Some married people find that they do not have enough tax withheld at the married rate.  For example, this can happen if you and your spouse both work.  Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4.  See Publication 505, Tax Withholding and Estimated Tax, for more information.  You can get IRS forms and publications on IRS.gov/forms at any time.

• Change of address.  Let the IRS know if you move.  To do that, file Form 8822, Change of Address, with the IRS.  You should also notify the U.S. Postal Service.  You can change your address online at USPS.com, or report the change at your local post office.

• Change in filing status.  If you are married as of December 31, that is your marital status for the entire year for tax purposes.  You and your spouse can choose to file your federal tax return jointly or separately each year.  It is a good idea to figure the tax both ways so you can choose the status that results in the least tax.

Choose the Right Filing Status

It’s important that you use the correct filing status when you file your tax return.  Your status can affect the amount of tax you owe for the year.  It may even affect whether you must file a tax return.  Keep in mind that your marital status on Dec. 31 is your status for the whole tax year.  Sometimes more than one filing status may apply to you.  If that happens, choose the one that allows you to pay the lowest tax.

Here’s a list of the five filing statuses:

1. Single.  This status normally applies if you aren’t married.  It applies if you are divorced or legally separated under state law.

2. Married Filing Jointly.  If you’re married, you and your spouse can file a joint tax return together.  If your spouse died in 2014, you often can file a joint return for that year.

3. Married Filing Separately.  A married couple can choose to file two separate tax returns.  This may benefit you if it results in less tax than if you file a joint tax return.  It’s a good idea for you to prepare your taxes both ways before you choose.  You can also use it if you want to be responsible only for your own tax.

4. Head of Household.  In most cases, this status applies if you are not married, but there are some special rules.  You also must have paid more than half the cost of keeping up a home for yourself and a qualifying person.  Don’t choose this status by mistake.  Be sure to check all the rules before you file.

5. Qualifying Widow(er) with Dependent Child.  This status may apply to you if your spouse died during 2012 or 2013 and you have a dependent child.  Certain other conditions also apply.

Note for same-sex married couples.  In most cases, you and your spouse must use a married filing status on your federal tax return if you were legally married in a state or foreign country that recognizes same-sex marriage.  That’s true even if you now live in a state that doesn’t recognize same-sex marriage.  Visit IRS.gov for more information.

Getting Married Can Affect Your Premium Tax Credit

The IRS reminds newlyweds to add a health insurance review to their to-do list.  This is particularly important if you receive premium assistance through advance payments of the premium tax credit through a Health Insurance Marketplace.

If you, your spouse or a dependent gets health insurance coverage through the Marketplace, you need to let the Marketplace know you got married.  Informing the Marketplace about changes in circumstances, such as marriage or divorce, allows the Marketplace to help make sure you have the right coverage for you and your family and adjust the amount of advance credit payments that the government sends to your health insurer.

  Reporting the changes will help you avoid having too much or not enough premium assistance paid to reduce your monthly health insurance premiums.  Getting too much premium assistance means you may owe additional money or get a smaller refund when you file your taxes.  Getting too little could mean missing out on monthly premium assistance that you deserve. You should also check whether getting married affects your, your spouse’s, or your dependents’ eligibility for coverage through your employer or your spouse’s employer, because that will affect your eligibility for the premium tax credit.

Other changes in circumstances that you should report to the Marketplace include:

• the birth or adoption of a child,
• divorce,
• getting or losing a job,
• moving to a new address, gaining or losing eligibility for employer or government sponsored health care coverage, and
• any other changes that might affect family composition, family size, income or your enrollment.

In addition, certain life events – like marriage – give you and your spouse the opportunity to sign up for health care during a special enrollment period.  That means that if one or both of you is uninsured, you may be able to get coverage now.   In most cases, the special enrollment period for Marketplace coverage is open for 60 days from the date of the life event.

Summer Weddings Mean Tax Changes

Taxes may not be high on your summer wedding plan checklist. But you should be aware of the tax issues that come along with marriage. Here are some basic tips that can help keep those issues to a minimum:

Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov, by calling 800-772-1213 or from your local SSA office.

Change tax withholding.  A change in your marital status means you must give your employer a new Form W-4, Employee's Withholding Allowance Certificate. If you and your spouse both work, your combined incomes may move you into a higher tax bracket. Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information.

Changes in circumstances.  If you receive advance payment of the premium tax credit in 2014, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

Address change.  Let the IRS know if your address changes. To do that, file Form 8822, Change of Address, with the IRS. You should also notify the U.S. Postal Service. You can ask them online at USPS.com to forward your mail. You may also report the change at your local post office.

Change in filing status.  If you’re married as of Dec. 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax.

Note for same-sex married couples: If you are legally married in a state or country that recognizes same-sex marriage, you generally must file as married on your federal tax return. This is true even if you and your spouse later live in a state or country that does not recognize same-sex marriage. See irs.gov for more information on this topic.

Choosing the Right Filing Status

Using the correct filing status is very important when you file your tax return.  You need to use the right status because it affects how much you pay in taxes.  It may even affect whether you must file a tax return.

When choosing a filing status, keep in mind that your marital status on Dec. 31 is your status for the whole year.  If more than one filing status applies to you, choose the one that will result in the lowest tax.

Note for same-sex married couples.  New rules apply to you if you were legally married in a state or foreign country that recognizes same-sex marriage.  You and your spouse generally must use a married filing status on your 2013 federal tax return.  This is true even if you and your spouse now live in a state or foreign country that does not recognize same-sex marriage.  See irs.gov and the instructions for your tax return for more information.

Here is a list of the five filing statuses to help you choose:

1.  Single.  This status normally applies if you aren’t married or are divorced or legally separated under state law.

2.  Married Filing Jointly.  A married couple can file one tax return together.  If your spouse died in 2013, you usually can still file a joint return for that year.

3.  Married Filing Separately.  A married couple can choose to file two separate tax returns instead of one joint return. This status may be to your benefit if it results in less tax.  You can also use it if you want to be responsible only for your own tax.

4.  Head of Household.  This status normally applies if you are not married.  You also must have paid more than half the cost of keeping up a home for yourself and a qualifying person.  Some people choose this status by mistake.  Be sure to check all the rules before you file.

5.  Qualifying Widow(er) with Dependent Child.  If your spouse died during 2011 or 2012 and you have a dependent child, this status may apply. Certain other conditions also apply.

Tax Tips for Newlyweds

Late spring and early summer are popular times for weddings.  Whatever the season, a change in your marital status can affect your taxes.  Here are several tips from the IRS for newlyweds.

• It’s important that the names and Social Security numbers that you put on your tax return match your Social Security Administration records.  If you’ve changed your name, report the change to the SSA.  To do that, file Form SS-5, Application for a Social Security Card.  You can get this form on their website at SSA.gov, by calling 800-772-1213 or by visiting your local SSA office.
  

• If your address has changed, file Form 8822, Change of Address to notify the IRS.  You should also notify the U.S. Postal Service if your address has changed.  You can ask to have your mail forwarded online at USPS.com or report the change at your local post office.
  

• If you work, report your name or address change to your employer.  This will help to ensure that you receive your Form W-2, Wage and Tax Statement, after the end of the year.
  

• If you and your spouse both work, you should check the amount of federal income tax withheld from your pay.  Your combined incomes may move you into a higher tax bracket.  Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4, Employee's Withholding Allowance Certificate. See Publication 505, Tax Withholding and Estimated Tax, for more information.
  

• If you didn’t qualify to itemize deductions before you were married, that may have changed.  You and your spouse may save money by itemizing rather than taking the standard deduction on your tax return.  You’ll need to use Form 1040 with Schedule A, Itemized Deductions.  You can’t use Form 1040A or 1040EZ when you itemize.
  

• If you are married as of Dec. 31, that’s your marital status for the entire year for tax purposes.  You and your spouse usually may choose to file your federal income tax return either jointly or separately in any given year.  You may want to figure the tax both ways to determine which filing status results in the lowest tax.  In most cases, it’s beneficial to file jointly.

Five Tips if Your Name Has Changed

If you were married or divorced and changed your name last year, be sure to notify the Social Security Administration before you file your taxes with the IRS.  If the name on your tax return doesn't match SSA records, the IRS will flag it as an error and that may delay your refund.

Here are five tips for a person whose name has changed.  They also apply if your dependent’s name has changed.

1.  If you have married and you’re using your new spouse’s last name or you've hyphenated your last name, notify the SSA. That way, the IRS computers can match your new name with your Social Security number.

2. If you were divorced and are now using your former last name, notify the SSA of your name change.

3.  Letting the SSA know about a name change is easy.  File Form SS-5, Application for a Social Security Card, at your local SSA office or by mail with proof of your legal name change.

4.  You can get Form SS-5 on the SSA’s website at www.ssa.gov, by calling 800-772-1213 or at local SSA offices.  Your new card will have the same number as your former card but will show your new name.

5.  If you adopted your new spouse’s children and their names changed, you'll need to update their names with the Social Security Administration (SSA) too.  For adopted children without Social Security Numbers, the parents can apply for an Adoption Taxpayer Identification Number by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, with the IRS.  The ATIN is a temporary number used in place of an SSN on the tax return.  Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).

Tax Tips for Recently Married Taxpayers

If you’ve recently updated your status from single to married, you’re not alone – late spring and summertime is a popular period for weddings.  Marriage also brings about some changes with your taxes.  Here are several tips for newlyweds from the IRS.

• Notify the Social Security Administration  It’s important that your name and Social Security number match on your next tax return, so if you’ve taken on a new name, report the change to the Social Security Administration.  File Form SS-5, Application for a Social Security Card.  The form is available on SSA’s website at www.ssa.gov, by calling 800-772-1213, or visiting a local SSA office.
• Notify the IRS if you move  IRS Form 8822, Change of Address, is the official way to update the IRS of your address change.  Download Form 8822 from IRS.gov or order it by calling 800-TAX-FORM (800-829-3676).
• Notify the U.S. Postal Service  To ensure your mail – including mail from the IRS – is forwarded to your new address, you’ll need to notify the U.S. Postal Service.  Submit a forwarding request online at USPS.com or visit your local post office.
• Notify your employer  Report your name and/or address change to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.
• Check your withholding  If you both work, keep in mind that you and your spouse’s combined income may move you into a higher tax bracket.  You can use Publication 505, Tax Withholding and Estimated Tax, to help determine the correct amount of withholding for your marital status, and it will also help you complete a new Form W-4, Employee’s Withholding Allowance Certificate.  Fill out and print Form W-4 online and give it to your employer(s) so the correct amount will be withheld from your pay.
• Select the right tax form  Choose your individual income tax form wisely because it can help save you money. Newlywed taxpayers may find that they now have enough deductions to itemize on their tax returns rather than taking the standard deduction.  Itemized deductions must be claimed on a Form 1040, not a 1040A or 1040EZ.
• Choose the best filing status  A person’s marital status on Dec. 31 determines whether the person is considered married for that year for tax purposes.  Tax law generally allows married couples to choose to file their federal income tax return either jointly or separately in any given year.  Figuring the tax both ways can determine which filing status will result in the lowest tax, but filing jointly is usually more beneficial.

Bottom line:  planning for your wedding may be over, but don’t forget about planning for the tax-related changes that marriage brings.  More information about changing your name, address and income tax withholding is available on IRS.gov.  

Five Tips for Recently Married or Divorced Taxpayers with a Name Change

If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration.  A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.

Here are five tips from the IRS for recently married or divorced taxpayers who have a name change.

1. f you took your spouse’s last name — or if you hyphenated your last names, you may run into complications if you don’t notify the SSA.  When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security number.

2.  If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.

3.  Informing the SSA of a name change is easy.  Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.

4.  Form SS-5 is available on SSA’s website at socialsecurity.gov, by calling 800-772-1213 or at local offices.  Your new card will have the same number as your previous card, but will show your new name.

5.  If you adopted your spouse’s children after getting married and their names changed, you’ll need to update their names with SSA too.  For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov.

Seven Tax Tips for Recently Married Taxpayers

With the summer wedding season in full swing, the Internal Revenue Service advises the soon-to-be married and the just married to review their changing tax status. If you recently got married or are planning a wedding, the last thing on your mind is taxes. However, there are some important steps you need to take to avoid stress at tax time. Here are seven tips for newlyweds.

1. Notify the Social Security Administration Report any name change to the Social Security Administration so your name and Social Security number will match when you file your next tax return. File a Form SS-5, Application for a Social Security Card, at your local SSA office. The form is available on SSA’s website at SSA.gov, by calling 800-772-1213 or at local offices.
2. Notify the IRS if you move If you have a new address you should notify the IRS by sending Form 8822, Change of Address. You may download Form 8822 from IRS.gov or order it by calling 800–TAX–FORM (800–829–3676).
3. Notify the U.S. Postal Service You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence or refunds.
4. Notify your employer Report any name and address changes to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.
5. Check your withholding If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on IRS.gov to assist you in determining the correct amount of withholding needed for your new filing status. The IRS Withholding Calculator will give you the information you need to complete a new Form W-4, Employee’s Withholding Allowance Certificate. You can fill it out and print it online and then give the form to your employer(s) so they withhold the correct amount from your pay.
6. Select the right tax form Choosing the right individual income tax form can help save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. Itemized deductions must be claimed on a Form 1040, not a 1040A or 1040EZ.
7. Choose the best filing status A person’s marital status on Dec. 31 determines whether the person is considered married for that year. Generally, the tax law allows married couples to choose to file their federal income tax return either jointly or separately in any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but usually filing jointly is more beneficial.

For more information about changing your name, address and income tax withholding visit IRS.gov.  

Alimony Paid

Amounts paid under divorce or separate maintenance decrees or written separation agreements entered into between you and your spouse or former spouse will be considered alimony for Federal tax purposes if:

1. You and your spouse or former spouse do not file a joint return with each other
2. You pay in cash (including checks or money orders)
3. The payment is received by (or on behalf of) your spouse or former spouse
4. The decree of divorce or separate maintenance does not say that the payment is not alimony
5. If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment
6. You have no liability to make the payment (in cash or property) after the death of your spouse or former spouse, and
7. Your payment is not treated as child support or a property settlement

You may deduct from income the amount of alimony or separate maintenance you paid, and you must include in income the amount of alimony or separate maintenance you received.

Child support is never deductible. If your decree of divorce or separate maintenance provides for alimony and child support, and you pay less than the total required, the payments apply first to child support. Any remaining amount is considered alimony.

Noncash property settlements, whether in a lump sum or installments, do not qualify as alimony. Voluntary payments (i.e., payments not required by a divorce decree or separation instrument) do not qualify as alimony.

You do not have to itemize deductions to deduct your alimony payments. You must claim the deduction onForm 1040 (PDF). You cannot use Form 1040A or Form 1040EZ. You must provide the social security number of the spouse or former spouse receiving the payments. If you don't, you may have to pay a $50 penalty and your deduction may be disallowed.

If you are the spouse or former spouse who is receiving the alimony, you must report the full amount as income on your Form 1040. You cannot use Form 1040A or Form 1040EZ. If you do not give your social security number to your spouse or former spouse who is making the alimony payments, you may have to pay a $50 penalty.

Does divorce trigger an IRS audit?

Are divorces reported to the IRS?

Does the IRS look at divorce decrees?

Does the IRS verify marital status?