Single after MFJ

[taxtoddnyc]

Couple divorced last May after filing joint and paying over $2,100 in state taxes on '07 returns. They're filing single this year, and I'm wondering how to divvy up that deduction on each Sch. A this year... 50/50, or prorate according to '07 income. Seems like the answer would be simple, but can't find it addressed anywhere.

Thanks for your opinions...

[ljwalters]

If it is a community property state than the answer should be 50/50. If you are going to protate it should be based on 07's income not 08s

That is where the refund generated. Also concider the date of seperation. and the amount of withholding each had thru the year (07).

My 2 income clients I suggest that the higher income earner claim the exemptions and the lower income earner always claim 0/0 on w4.

Linda and buddy

[kcjenkins]

Logically, if they agree you could allocate. But most common is for the one who actually PAID the taxes to take the deduction. And it's usually one or the other, olthough sometimes they do split it.

[jasdlm]

If the psa (property settlement agreement) is well drafted, it should speak to the allocation of income/deductions for the year in which the divorce is final. I always ask for a copy of the divorce decree and PSA when filing a return for the year of a divorce.