How to Handle Partial Year Tax Events

Описание: Did you have a baby last year during the year, Feb 16th, July 10, Oct 23, Dec 29th?
Did you get married sometime during last year?
Did you get divorced?
If someone passed away during the year

I would call that a partial year incident

There is confusion how to file your Federal Tax Return when you have one of the part year incidences.

You might wonder how you are going to file, 25% of a baby, 50% single and 50% married, or likewise divorced?

The IRS rules are pretty simple: whatever your status was on the last day of the year will be your status for the ENTIRE year. YEp, that's right, you have a baby on December 31st or even this past January 1st and you get the full child dependent deduction. Same goes for the other partial year scenarios

One exception to note is partial year residencies, when you move from say Los Angeles to Philadelphia, you'll file a partial year return for the income earned during your period of residency. Most W-2's will show you the amounts earned in each state which will be pretty obvious. If you're self employed you'll need to have kept track of the income and expenses for each state.

So there you have it...when it comes to partial year incidences you don't claim half a person, you get the whole deal according to your status on 12/31.