Filing taxes after divorce or separation can be complicated. As another tax year begins, it is important to remember how taxes may affect your post-divorce life. Many couples face high tax costs after they have ended their marriage. That's because receiving alimony and dividing property can become complicated very quickly on a tax front. One fiscal architect says that the biggest taxable events of divorce are not necessarily a part of the divorce process directly. Instead, many of them are processes that result from divorce or are a consequence of divorce.

One of the most important things to consider when it comes to divorce and taxes is who will claim the kids as dependents on his or her tax return in the future. Before 2009, the courts allowed couples to determine who would claim the kids in the tax return in the divorce decree. This is no longer possible. Now, you will have to use an IRS Form 8332 to claim your children as dependents post-divorce. The form must be signed by both the non-custodial and custodial parent to evidence full compliance.

It is important to talk through who will claim the kids as dependents in a divorce, as it could have significant implications on your tax return. Parents get a $3,900 deduction from federal taxable income for having a child, which is likely to significantly reduce your taxes. Each qualifying child must live with the parent for more than half of the year and be under the age of 19 to qualify as a dependent. You can also claim children as dependents if they are under 24 and are full time students for the year.

It's important to remember that your marital status at the end of the year determines how you will file your tax return. This means that if you get divorced at the end of the year, you can file single. If you were still married at the end of the year, then you may need to file jointly as a married couple.

When it comes to alimony, it is important to remember that the income is taxable to the recipient. The person who pays alimony is able to deduct it from taxes. Child support is not taxable to the recipient, and it's not deductible for the person paying it.

Every person's financial situation is unique, and divorce may or may not work in your favor when it comes to the tax bill. If you are currently dealing with a divorce, it's important to keep tax implications in mind. Don't hesitate to talk with a skilled divorce lawyer if you want more information about divorce. A local team of successful lawyers can help you to learn more about your case.