Divorce is considered a major life event by the IRS and tax officials, and many people are not aware of the tax implications of divorce. If you are going through a divorce, you will likely have many questions about divorce and taxes that your divorce attorney can answer.
A common question about divorce and taxes is whether child support and spousal support are taxed. Child benefits are generally not taxed to the beneficiary when benefits are paid. If you receive payments from your spouse after a divorce, he or she is responsible for child support, but you are responsible for alimony or family support taxes.
Image source: Google
Frequently asked questions about divorce and taxes
Taxes are inherently confusing and can become even more complicated when you are going through a divorce. You need the help of a divorce attorney to understand the impact of divorce on your tax situation. It is important to avoid tax mistakes in the settlement agreement that could harm you in the future.
Some of the most common questions people have about divorce and taxes are:
• Which delivery status should I choose?
• Who has the right to sue dependent children?
• Do I have to pay taxes on child support or spouse support?
Solving Divorce and Tax Issues
An experienced divorce attorney can help answer your specific questions about how a divorce might affect your taxes.
One of the first decisions you will need to make is which status you should choose during your divorce. Your delivery status is determined on the last day of the year. So, if you are classified as divorced or legally separated on December 31, you will choose to file as "unmarried."
Before you submit your tax return, you should discuss with your husband. who can claim your children are addicts. The IRS doesn't care who makes the claim, so it's a decision that you, your spouse, and your divorce attorney can discuss and address in your settlement agreement.