Now that you’re preparing for a divorce, something that you should start thinking about is how your taxes may be affected. The reality is that tax issues do come up during most divorces. You may need to pay taxes on any spousal support you receive or may have to consider how having children involved in your divorce will affect your tax return.
It’s important that you take the right steps to resolve tax-related issues because not doing so could result in trouble with the Internal Revenue Service down the line. The good news is that your divorce attorney should be familiar with divorce-related tax concerns and how you can address them.
What are some common tax concerns during a divorce?
Every couple’s situation is a little different, but some common tax concerns may include:
- Determining the head of household status
- Dependency exemptions
- Childcare credits
- Standard deductions
- Alimony taxes/deductions
- Education credits
- Education deductions
For example, if you have children, you may be entitled to a credit or deduction for them. However, you and your ex-spouse cannot claim the credit or deduction on both of your tax returns. It’s important that you have a plan, so you know what you can claim. Some divorced parents, for example, may claim deductions biennially, so that they can both benefit from the dependency exemptions or childcare credits.
It can be a complicated situation when you start to think about how your taxes are involved with your divorce, but your attorney will take steps to help. Our website has more information on the tax implications of a divorce and how they may affect you and your family in the future.