Divorce is recognized as a significant existence event through the IRS and tax preparers, and so many people are not aware from the aftereffect of divorce on taxes. When you are dealing with a divorce, you will probably have lots of questions regarding divorce and taxes, which your divorce attorney will help you answer.
Common Questions regarding Divorce and Taxes
Taxes are confusing on their own, and may get difficult when you are dealing with a divorce. You will need the aid of a divorce attorney that will help you comprehend the aftereffect of divorce in your tax situation, and that will help you avoid making tax mistakes inside your settlement agreement that may set you back later on.
A few of the common questions individuals have about divorce and taxes include:
• What filing status will i choose?
• Who will get to assert the kids as dependents?
• Must i pay taxes on supporting your children or alimony?
Addressing Concerns about Divorce and Taxes
A skilled divorce attorney might help answer all your specific questions regarding the way your divorce may affect your taxes.
Among the first decisions you will need to make is exactly what filing status you need to choose on your divorce. Your filing status is decided other family members . of the season. So, should you be considered divorced or legally separated on December 31, you’ll decide to file as “single.”
You may also decide to file as “mind of household” in cases like this as lengthy when you are legally separated or divorced, give a home and most 50% from the support with a minimum of one dependent. You will want to ask your divorce attorney which option may likely last better.
For those who have your spouse’s cooperation and also you remained as legally married on December 31, you are able to file as “married filing jointly,” that has significant tax benefits over filing as “married filing individually.”
Before tax filing time, you will want to consult with your partner who’ll reach claim the kids as dependents. The Government is unconcerned with who helps make the claim, therefore it is a choice you, your husband, as well as your divorce attorney can discuss and address inside your settlement agreement.
Another common query individuals have about divorce and taxes is whether or not supporting your children and alimony are taxed. Supporting your children is usually not taxed for that recipient, while alimony is. If you are receiving payments out of your spouse after your divorce, he’ll result in taxes around the supporting your children, but you’ll result in the required taxes around the alimony or support of loved ones.
Due to the complicated nature from the tax system, you will want to talk to a divorce attorney to completely know how your divorce might affect your taxes. You are able to take all of your concerns about divorce and taxes for an experienced divorce attorney who are able to review your situation and help you around the right tax decisions to create.
Charles R. Hofheimer is really a focused, sincere, compassionate divorce attorney that has dedicated his practice to helping women in Virginia resolve their toughest family law issues like separation, child custody battles and property disputes. Mr. Hofheimer likes you women’s legal rights, the welfare and happiness of the children, as well as your financial security.
