As the filing deadline for taxes is rapidly approaching, those who are divorced or are considering divorce should review the typical concerns that crop up during this time for people as they prepare their taxes.
Your filing status is determined by your marital status as of December 31st of the tax year. You have to file jointly even if you are living separately and going through the divorce process. It is beneficial to file jointly as certain deductions and limits are doubled for married couples. There is also bad news; both partners would be liable in the event of an audit.
Another area that could result in a tax break is having a dependent. In the majority of cases, the custodial parent can claim a child as a dependent by having the child for more than half of the year. Certain divorce decrees give the non-custodial parent the corresponding tax break for claiming a dependent child in the course of splitting property, so it is important to review your divorce agreement.
Some people might think that child support payments are deductible. That is not the case unless the payments go towards childcare, education or healthcare expenses. For example, paying for college can result in tax credits and deductions according to the Tuition and Fees Deduction and the American Opportunity Tax Credit.
Alimony or spousal support can be deducted if it falls under one of four different circumstances. There are as follows: the payments are made according to a written agreement, the payments are not child support, the payments stop when your ex dies, and you and your spouse don’t live in the same house.
Taxes are not the only thing that is affected by a divorce. If you have made the decision that you want to divorce your spouse, then it is essential to have the guidance of a legal professional. Contact an experienced divorce attorney in Schaumburg who will guide you through the process.
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