Discussion:Multi-part: How do I file this year?

I am current seperated (not legally, I suppose). In June 2004, my wife moved out of the house which we own. Her and 3 kids lived down the street from me, while 1 child (my step-son) stayed with me. In August 2004, I became unemployed. My wife has been on SSA disability all along. We both lived in Indiana, only a mile from each other. Since that time, I send her money regularly (no set amount) for support, but it's as a "marital compensation" and not through child support channels (To keep from affecting her SSA)

- In 2004, I we filed jointly with no problems -

Now, major changes came in 2005 - which is where my question mostly lies: In March 2005, I became employed in Iowa and I am still at the same location. My wife stayed in Indiana with 3 kids. My step-son lived with me until he left for the Marines in August 2005. At the end of 2005 (literally, December 31st) my wife moved to Florida with the 3 kids.

How will this conglomeration of facts be filed for the 2005 tax year? Specifically:

• Do I and/or can I file married or single? Which is best?
• Who claims which dependents?
• Is my step-son considered a dependent while in the USMC?
• With the house still on the market, but empty, who/how do I claim it?
• With 3 states involved (Florida I guess won't be due to the date of move), where do I file state forms?
• Do I (and how) claim child support costs?
• What other problems/questions can I expect?

My wife and I plan on making a divorce official when we have the money for it (tax refund may be nice for that purpose). Until that time, and all along this timeline, we are in a very amicable relationship and are willing to help each other out as needed for taxes, etc. Any help you can offer would be greatly appreciated. Thanks.

Step-son is not a dependant while in the Marines, for this year though you'd have to see if he might still be, look at the support test and income test.

Interest on home mortgage is still deductable on sched A.

As for state: Indiana will be Part-year Resident forms for at least you, as will Iowa. For your wife: Florida has no income tax, but really how much income could she have earned that is not Indiana? (oh, oops, SS disability is not in your gross income anyways.) Although, she should file on the Part-Year form and show resident for 01-01 to 12-30. Have you taken the Property tax deduction and/or the Renters deduction?

No child support involved, even when you're divorced, child support is not claimed as income by your wife nor a deduction for you.

When you do get the divorce, look into having her sign away the exemption for the kids if you provide child support, thats done on form 8332.