Filing Status for Separated Couples

Today's tax question comes from "daghouff" in Texas. She asks, "My soon to be exhusband and I live in TX. He is employed with large salary; I am unemployed. He filed for divorce, which should be final by 4/30/2006. For 2006, how do I file? Married for part of the year, but single for most of the year. Plus I am leaving TX 4/30 to move to MD. Married filing separately, then filing as single? I will be paying taxes on alimony, plus state taxes in MD which will be my residence for 2006, since I will live there more than 6 months. My alimony income will start probably May 1. Do I have to pay state taxes in MD for the whole year, or just the time I lived there. TX does not have state tax. Thanks for any help."

Your filing status for tax purposes is determined by your marital status on December 31st. If you were separated but the divorce was not final, you probably will file as Married Filing Separately. For next year, if your divorce becomes final, you will be able to file as Single for the whole year.

If you have a dependent child, and you did not live with your husband for the last 6 months of the year, then you could file as Head of Household. So for this year, your only possible options are Married Filing Separately or Head of Household.

If you live in Maryland for more than 183 days (that is, more than half the year), you will be considered a resident of Maryland and will pay tax on your total annual income in Maryland. However, in the year you move into (or out of) Maryland, you can file as a part-year resident. This will help prevent the state of Maryland from taxing all your income.

Essential Resources:

• IRS Publication 504, Divorced or Separated Individuals
• Comptroller of Maryland Tax Website
• Maryland Residency Status

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