Choosing to file for a divorce is a big decision for anyone. It means changing almost everything about your life, for woman changing their names again, perhaps moving to a new home, raising your children as a single parent, separating your bank accounts, dividing your assets, etc. This process can be highly overwhelming and yet for many couples it is just something that has to be done. If and when you choose to file for a divorce, it is highly encouraged that you discuss your situation with a local family and divorce attorney who can walk you through the many steps of the process, helping you determine factors such as child custody, division of the assets, spousal support, etc. A divorce attorney has spent many years learning about the specific laws in your state pertaining to divorce and family law and is therefore going to help you protect yourself and your children and essentially fight for what is rightfully yours in the divorce.
However, there is one concern that many divorcing, or recently divorced couples may have: "What do we do with taxes?" Tax season in all honesty can be a trying time for everyone because it means gathering all of your IRS forms from your work, your medical, your investments, everything essentially in order to properly claim and report all of your financial details to the government. This process as a single person or a married couple is difficult enough, adding in your divorce to the picture may just make things a tad more complicating. Here are a few of the common questions that often arise for those who are recently divorced and concerned about their tax filings.
How do I file as a divorcee? You are likely used to filing for your taxes as "married, filing jointly", however after a divorce this may or may not change. Depending on when you filed for a divorce will determine how your taxes are affected. Tax season is cut off in most cases on December 31, therefore if you and your spouse didn't divorce until after the new year your filing will still say that you are married, even though today you are not. Even if you and your spouse chose to separate for a time before the new year rolled in, even though you were technically independent, your taxes will still claim you as being married for the year of 2012. Being able to file for your taxes as a married couple definitely has its benefits, and you may be able to receive more money back as a result. Every situation is unique, though in most cases this is true.
Who claims child dependency? After a divorce, your settlement will determine who has the right to claim the child as their dependent; and it is usually the one who was granted the custody. What determines who the primary custodial parent is, according to the IRS, is whoever has the child in their home for more than half of a years' time.
Is child support tax deductible? No, it is not. If you are required by the court to pay for child support, you will not be able to receive tax returns on those payments. There are some exemptions relating to child expenses that you may also contribute to such as education, health, etc.
Are the alimony payments deductible? Under some circumstances your alimony payments can be deductible during your taxes. If your alimony is a payment that will continue on until they die, then you will be able to deduct them. If the alimony payments are not used for any form of child support, they too can be tax deductible.