Filing taxes can be complicated enough to begin with, and when a divorce is involved, there are additional items that one should consider because separation and divorce will impact your tax situation. From claiming dependents on your tax return to your filing status and marital property, there can be a lot to think about. The good news is that there are experienced legal professionals who can ensure that your tax issues are resolved in the most advantageous manner to you.
Filing taxes can be complicated enough to begin with, and when a divorce is involved, there are additional items that one should consider because separation and divorce will impact your tax situation. From claiming dependents on your tax return to your filing status and marital property, there can be a lot to think about. The good news is that there are experienced legal professionals who can ensure that your tax issues are resolved in the most advantageous manner to you.
If you are recently divorced or are nearing the end of your divorce and are wondering what items you need to consider when filing your taxes, the below list can help:
- Filing Status – Once your divorce is
final, your filing status will change. You will need to use your status as of
December 31 of the tax year being filed. This means that, if there are reasons
why you and your soon to be ex-spouse want to file jointly for the final year,
you may want to wait until the beginning part of the following year to make
your divorce final. - Alimony –
The ability to deduct alimony and spousal support payments has changed for
2019. Alimony and spousal support
payments made in 2019 pursuant to an agreement or order entered in 2019 are no
longer tax deductible to the payor and no longer taxable to the payee. Alimony and spousal support awards modified
in 2019 are also subject to the same standard. - Child Support – Child support is not taxable or deductible. Therefore, the payor of
child support does not get to deduct such payments and the payee does not have
to report such payments as taxable income. - Dependents –
There are tax benefits that come with claiming a
dependent child. Some include the exemption for the child, the child tax
credit, head of household filing status, the credit for child and dependent
care expenses, the exclusion from income for dependent care benefits, and the
earned income credit. Parties can agree on
the dependency exemptions or the party that has more than fifty percent custody
of the child or children will have the right to the exemptions. - Marital Property – In most cases, marital
property that was given to one spouse or the other during a divorce usually has
no tax consequences. There may be cases where taxes are affected, though, and
consulting with your experienced legal professional and your accountant is key.
While there is a lot to consider when filing your taxes after a divorce, it’s comforting to know there are legal professionals with the right experience available to help you every step of the way. To learn more about what Wilder Mahood McKinley & Oglesby can do to resolve your tax issues, contact us online or call our office in Pittsburgh, Pennsylvania at 412-261-4040.
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