Divorce Changes Family But Also Tax Filing Process, Part 2
Our previous post introduced the topic of how divorce affects the process of tax filing. Understanding how to approach one's taxes is a significant change after divorce, and knowing what questions to ask and what bases to cover can make the already stressful family change less stressful.
The advice in the last post was for parties to consider taxes when determining alimony terms. Other tax tips involve filing status, child custody terms and costs related to children. Taxes are due soon, so newly divorced parties who are finishing up their taxes should be familiar with the following matters and more:
Filing status: Your marital status on the last day of the filing year determines how you file. Were you still married? Unmarried by that point? Did you have a dependant living with you in the home? Filing statuses come with different tax advantages.
Child custody: If you have primary custody of the child then there are tax advantages through a dependent exemption. There are various possible tax credits that a custodial parent should learn about during the tax filing process. Divorce can feel like a big financial hit, especially when caring for the kids. Don't miss out on any exemptions that you might deserve in order to support the change.
Divorce brings about family changes, emotional changes and financial changes. All of that change can leave a person's head spinning and in need of straightforward, experienced and well-rounded guidance. Our Harrisburg firm has experience in tax law and family law. We can provide further advice on the tax implications of divorce and other complex issues.
Source: Forbes, "Taxes And Divorce: 6 Tips For Women," Kerry Hannon, March 7, 2013