Tax Time for the Newly-Single Can Be a Shocker or How to Pay for a House without Getting One
Let me tell you a little secret: If you forget to change your filing status with your employer after you become single, your taxes can be a real shocker when tax time comes. Voice of experience here. Today.
So, my ex and I split up last year. He always did our taxes. I would nod and smile as we went through the documents, not really paying attention. After a few minutes of explanation, I would sign on the numerous proverbial dotted lines and everything was fine. The refunds would arrive like clockwork.
My accountant got my full attention this morning when he told me what my tax liability was for not telling my employer I was no longer married. The fact that I hadn’t known I needed to tell my employer will bring further blessings next year, since we are so far into this year. I have spent a lot of time today, scrambling to inform my HR department. They apparently aren’t working right now, due to the COVID19 fun, which will make my joy even greater next year since I can’t get a hold of them.
My attention was so grabbed this morning that I went weak in my knees. The number that my accountant gave me was more than half what I paid for my first house. I kid you not. A lot more than half, truth be told. And I wasn’t getting a house out of the deal. And the money was due by when??????
So, here’s the takeaway for all of my suddenly single friends: Inform your employer IMMEDIATELY when you are no longer married. If you know that you will be unexpectedly unmarried soon, go ahead and change your status now, so that the taxes will not come as a surprise next April. And so you won’t get lulled into thinking you are taking home more money that you are.
So where’s my house?