Tax Filing for Special Situations: Divorce, Self-Employment, and Free Assistance Programs

Tax filing becomes complex during significant life events, and understanding IRS guidelines is crucial. For divorced or separated taxpayers, determining the correct filing status—such as Single, Married Filing Jointly (if still legally married at year-end), or Head of Household—is the first step. The Head of Household status offers lower tax rates and a higher standard deduction, but eligibility requires paying over half the household costs and having a qualifying dependent. Deciding who claims children as dependents is critical; the custodial parent generally has priority unless released via Form 8332. This decision directly impacts credits like the Child Tax Credit, which provides up to $2,000 per qualifying child under age 17, with up to $1,600 refundable for 2023. Self-employed individuals, including freelancers and gig economy workers, must track all income and expenses using Schedule C. They should make quarterly estimated tax payments to avoid underpayment penalties, which can be calculated accurately with the IRS Tax Withholding Estimator. For those with non-wage income, this tool helps adjust withholdings on Form W-4 to prevent unexpected tax bills. Free tax assistance programs, such as Volunteer Income Tax Assistance (VITA), serve taxpayers earning $60,000 or less, persons with disabilities, and limited English speakers, offering preparation for basic returns. Tax Counseling for the Elderly (TCE) specializes in issues affecting taxpayers aged 60 and older, including pensions and retirement-related questions. Both programs are IRS-sponsored and ensure accurate filings, reducing errors that could trigger audits. Always maintain records like divorce decrees, expense receipts, and prior-year returns to substantiate claims and streamline the process.