The Taxman Cometh

According to H&R Block's website, the IRS considers you divorced for the entire year within which you got divorced. So, when you file your tax return, you only get credit for yourself for the year. I got divorced in November. That means that the exemptions I claimed for Kay and Misty do not apply, starting in January. Without those exemptions, I paid too little in taxes for 10 months. I now over $7000 in back taxes.

On top of taking a $500 monthly pay cut (because of the fewer exemptions), I now will have to pay the IRS back taxes. My initial research shows that the IRS may allow me to pay it back over as long as three years. That's about $200 a month, not including whatever interest and penalties they charge me. I have no idea what those could be.

Assuming the best case scenario, I'm now going to be taking home $700 less a month. That's a lot. I'm going to talk to an H&R Block tax specialist today, to see what my options are. I don't think I'll get away with paying less, but I want to make sure that I cover every eventuality and know all my options.