Question

Darren Banesuela, a married man, comes to you with a tax question. He wants to know what filing status he should use for the current tax year 2019 when he files his tax return before April 15, 2020. He has been estranged and separated from his wife for two years during their separation. Their separation is not amicable but very rancorous. This means they strongly dislike each other and cannot agree on anything. However, the two have yet to file for divorce; therefore, a final divorce decree will not be made before year-end. Darren’s wife, according to Darren, has been involved with another man for several months. Darren also tells you that he has two minor children with his wife and both children live with her 100% of the time. He sees his children occasionally when they visit him at his apartment but they never spend the night. What filing status should Darren claim?

Memo style response.

Answer 1

Solution: ( Assuming in USA)

Under IRS rules, Darren Banesuela is  technically still married if his divorce is not yet filed or final as of Dec. 31, even if he and his wife file for divorce during the year. Likewise, if the court issued divorce decree on Dec. 31 to daren banesuela , he will be  considered unmarried for the whole year and he  must file his taxes as either a single person or head of household if he qualifies.

It doesn’t matter if daren and his  spouse have been living separately—they are still married according to the tax code unless a court order states that they are divorced. Daren is no longer married and must file a single return if he is separated by court order on Dec. 31, not just living apart on their  own terms.

Daren has the option of filing a joint married return with his spouse if he is still married, even if he no longer live together. This can be beneficial to him because ,among other things it makes him eligible for a higher standard deduction when he combines his incomes on the same return.

Darren has two minor children, it’s perfectly ok for him  to claim one while his  spouse claims the other—in fact, this is somewhat common after separation or divorce.

The IRS has special tiebreaker rules that states that  if you and your spouse dont  agree on who claims the children. The right to claim a child typically is with the custodial parent. Your child must have lived with you for more than half the year to qualify as your dependent.

Looking at Darens current situation it Advisable to him to file a Seperate Return.