Divorce Tax – Questions Asked, Answers Revealed

Divorce is an emotional process and due to these feelings we sometimes encounter, some issues may be overlooked which could have a negative impact when it comes to filing your taxes. Unfortunately you can’t divorce your taxes, so let’s get right to as we share questions and answers you should ask yourself on divorce tax.

1. What is my filing status after divorce?

Your marital status at the end of the year determines your filing status. If you have a settlement agreement and final decree, you can file as single. You may also file as head of household, which would decrease your tax obligation.

2. Should I file jointly with my ex spouse if I am eligible?

You can and, doing so may provide some benefits over filing separate. However, if you file jointly and your ex doesn’t meet their obligations to the IRS, you can be held responsible.

3. Is child support taxable?

No, it is not taxable to the recipient or deductible to the payor.

4. Are divorce costs deductible?

No, legal fees are considered personal expenses so they can’t be used as a deduction.

5. Who can claim the child tax credit and dependent care credit?

The parent who claims the exemption for the child is the only parent who can claim the child tax credit.

These answers should be thought out and prepared as you file your upcoming taxes. If you need further assistance we highly recommend seeking legal advice.

 

Are you recently divorced and have a question or concern on your taxes? Would you like to share your opinion or make a comment on the Unlock Your Wealth Radio Show? Please leave your comment or questions in the space provided below and share this article with your friends and family on Facebook and Twitter. Your comments or question could be chosen as our featured Money Question Monday and a phone call by financial expert Heather Wagenhals could dial your way to be live on the Unlock Your Wealth Radio Show.

 

 

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