Divorced Clients

[Super Mom]

Thank You John H For All Of Your Research, I See That On The Nc Dor Website! I'll Check With My Client Again, They Really Wanted Mfj Status So Maybe It's Possible!!!!!! What A Mess!!!! We Learn Something New All The Time Don't We?!

[JohnH]

Thanks, I sent him a message.

It took me a while, but I finally found this on the NCDOR web site.

---> Under the Internal Revenue Code, Section 2(b)(2), an individual who is legally separated from his/her spouse under a decree of divorce or of separate maintenance shall not be considered as married. North Carolina law, N.C.G.S. 52-10.1, authorizes a married couple to enter into a legal separation agreement. Although an agreement pursuant to N.C.G.S. 52-10.1 is a legal contract without being sanctioned by a court, it does not constitute a legal separation under a decree of divorce or of separate maintenance within the meaning of the Internal Revenue Code. Therefore, a separation agreement must be sanctioned by a court in the form of a decree or judgment for parties to be considered unmarried for purposes of filing status. (updated December 2009) <---


Looks like NC is kinda picky about this sort of thing. I think what it says is that a legal separation agreement is valid in NC but that isn't enough - a judge has to bless it before NC recognizes it for tax purposes. So legally separated with a legally binding agreement, but without a court's blessing, leaves only the choice of MFS or MFJ available to the taxpayers.

(I also think this means that what I speculated in my PM to you earlier was incorrect).
Anybody have any other insights on this?

[ChEAr$]

Last year I had a client whose wife claimed she was going to file single since she thought they were legally separated JUST because the judge issued a restraining
order to keep him away from her! Not the same of course.

[Super Mom]

Thanks, I sent him a message.

[RitaB]

Super Mom, You might ask JohnH

JohnH is from NC, and I'm sure he'd be glad to help. You might personal message him cause he might not see this. Or start a new thread that says, "Hey, John H, something, something."

[Possi]

Split it

I would split the Sch A.

As far as the filing status goes, the state of VA (a commonwealth, and not a "state") does not recognize legal separations. You are either married or divorced.

I'm sure you can call the NCDOR and find out if they recognize legal separations. 877-252-3052 from TTB States.

[Super Mom]

OK, since no responses on the NC knowledge. Let's say they each have to be filed as single. Is splitting the 1098 interest and property tax and state refund ok?

[Super Mom]

Good question, I don't know, it's in NC anyone know?

[taxdude71]

The improtant part of that is "legally seperated". Many states have wording in their laws that forbid legally seperated people from living together. So assuming this is one of those states and the people just ignored the laws and lived together, are they still "legally" seperated?

[Super Mom]

There's always something new, these taxes really keep us on our feet!

[oceanlovin'ea]

I learned something new today. I guess I have never had someone that was legally separated.

Linda

[ChEAr$]

The taxbook says that if they are legally seperated in 2009 according to state law (and they were) then they must file single or HOH if they qualify.

As for HOH issue, I wouldn't even think about that, given the living arrangements etc in
this particular case. Living apart on two different floors is one thing, but proving more than
1/2 costs of household is quite another.

[Super Mom]

The taxbook says that if they are legally seperated in 2009 according to state law (and they were) then they must file single or HOH if they qualify.

[oceanlovin'ea]

just wondering

I have never had this situation before, but they are still legally married even though they have a legal separation.
Doesn't IRS say "your status at end of year" Still married - MFJ or MFS. Neither of them are really single until divorce is final.

Linda

[Super Mom]

I know they can't do joint because they did have a legal seperation, otherwise I would have went with that option. Now I'm at one single and one HOH or 2 singles, and is splitting the state refund (itemizers) and splitting the 1098 interest and property tax ok?