3 Tips for Navigating Taxes When Filing for a Divorce
Filing for a divorce is always a hassle. Dealing with taxes while in middle of the divorce process just makes things more confusing. Here are a few tips to help you out.
Know Your Filing Status
Your filing status depends on your marital status on December 31st of the year you’re filing for. If you were already divorced then, you should file as a single. If you were married, you’ll file as married. If filing as married, you can file either jointly or separately.
Communication Is Key
You may not want to ever talk to your spouse again, but it’s important that you communicate about filing taxes. You don’t want one of you filing jointly and the other filing separately. You also don’t want both of you filing separately and each claiming your children as dependents. This is a sure way to get the IRS knocking on your door for an audit. Also, remember that joint returns have joint liability for any funny stuff.
Child Support and Alimony
If you’re paying child support, that is not tax deductible. If you’re paying alimony, however, that is deductible. If you are receiving alimony, then that is reportable income. Keep in mind that if you are paying interim support without a court order specifying that you pay alimony, then you can not report it as alimony. There are some other instances where alimony may not be deductible, so learn about the rules.
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