Filing Your Taxes After A Divorce
Getting a divorce requires adapting to a variety of changes. In addition to the impacts on your personal life, there are practical issues that must be addressed as well. With tax season upon us, you may have questions regarding this year’s tax return. The following highlights four important issues concerning taxes after a divorce that you need to be aware of.
Four Important Tax Changes To Consider When Getting A Divorce
During the last tax season, COVID-19 prompted temporary changes in deadlines for filing federal tax returns. Rather than having to submit these by the usual deadline of April 15th, Internal Revenue Service (IRS) filing deadlines were extended to July 15, 2020. While the pandemic is still an issue, no extensions have been announced as of yet. For most people, this means getting tax forms, W-2s, and other relevant documents together now to ensure you are prepared.
If you have gotten a divorce over the past year or are currently involved in divorce proceedings, you likely have questions regarding how this could impact your tax return. The following details four important tax changes you may need to make:
- Filing separately or together.
If you are currently married and going through a divorce, you and your spouse have the option of filing your tax returns together. Depending on your incomes, this could reduce tax debts. It could also make you jointly liable for any deficiencies. If you already have a final divorce order, you will need to file separately.
- Updating your filing status.
In pending divorce cases, you have the option to file as a married couple living together or separately. If you are already divorced, the presence of children or others in your home will determine whether to claim single status or head of household.
- The right to claim children as dependents.
If you are divorcing and have children, you will need to determine who claims them on tax returns. Generally, the person they spend the most amount of time with is entitled to this deduction, but time sharing agreements could complicate that. If you are already divorced and this is not specified in your divorce decree, discuss the matter with an attorney if disputes arise.
- Claiming alimony as income or a deduction.
Under The Tax Cuts and Jobs Act (TCJA) enacted in 2017, alimony is no longer listed as income on tax returns, nor is the paying spouse able to claim it as a deduction. However, this only applies to divorce orders issued after January 1, 2019. If you receive alimony through a divorce settlement agreement issued prior to this time, you could still have to pay taxes on any spousal support received.
Let Us Help You Today
Our experienced Fort Lauderdale divorce attorney can help you navigate taxes and other important issues that are likely to arise during and after divorce proceedings. Call or contact the office of Vanessa L. Prieto online and request a consultation to discuss your situation today.