Getting a divorce can be difficult for all parties, including financially. Your assets are now up for grabs, not only by your soon to be ex, but also by the IRS. Divorce impacts your taxes a lot, so you should be aware of the expectations at tax time when you get a divorce.<\/p>\n
Filing Status<\/u><\/strong><\/p>\n Either you\u2019re single or you\u2019re married. Checking the appropriate box may not seem complicated but for those going through the process of divorce it becomes a chore. Regardless of when you filed the paperwork, if your divorce isn\u2019t finalized by December 31st<\/sup> of the tax year, you are still considered married for tax purposes.<\/p>\n You may be able to claim head of household if you are a parent and separated from your spouse. This status can net you greater deductions, but you have to meet certain qualifications:<\/p>\n <\/p>\n Exemptions<\/u><\/strong><\/p>\n Once you decide to separate from your spouse, if you have children, you taxes can get more complicated. Generally, in order to claim exemptions for your children, the dependent must live with you for over half the year. However, by signing a written contract, you can determine which parent gets the child\u2019s $4,000 exemption.<\/p>\n Alimony and Child Support<\/u><\/strong><\/p>\n Once you have a legal divorce decree, you may be responsible for alimony. Alimony payments are deductible by the person who pays them, and they are counted as income for the receiving party.<\/p>\n Child support payments are neither deductible nor counted as income. It\u2019s important to make specific declarations in the divorce agreement as to how payments are designated, as different payments are taxed based on their designation.<\/p>\n","protected":false},"excerpt":{"rendered":" Getting a divorce can be difficult for all parties, including financially. Your assets are now up for grabs, not only by your soon to be ex, but also by the IRS. Divorce impacts your taxes a lot, so you should be aware of the expectations at tax time when you get a divorce. Filing Status […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[119,125],"tags":[319,320,386,84,48],"class_list":["post-670","post","type-post","status-publish","format-standard","hentry","category-filing-status-2","category-general-filing","tag-alimony-payments","tag-child-support-payments","tag-divorce","tag-filing-status","tag-head-of-household"],"yoast_head":"\n\n