Are you planning on getting a divorce? Here’s what you should know about how it could impact your taxes and how to get experienced legal help when you need it most.
Know What Filing Status You’ll Claim
Whether or not your divorce has been finalized plays an important role in how you should file your taxes. If the dissolution of your marriage is still ongoing, you can file married or married filing separately. Often, filing married will garner a larger tax return that you and your spouse can divide fairly between the two of you.
Decide With Your Ex-Spouse Who Will Claim the Kids As Dependents
If you share children with your ex, one of you will need to claim them as dependents unless you are still able to file as married. Whoever claims the children on their taxes will usually get a larger tax return, so you and your ex may not agree on who gets to claim them. A judge may order you to alternate years or find another way to compensate the spouse who did not claim the children.
Calculate Your Alimony Tax
Whether you pay tax on alimony or spousal support depends on whether you are the payor or recipient of the support. Under the Tax Cuts and Jobs Act of 2019, payors are no longer able to deduct spousal support payments. Recipients do not have to claim the money they receive in spousal support on their taxes, meaning that the tax responsibility is solely the burden of the payor. If you think you may have to pay alimony, it’s crucial that you involve a family lawyer right away.
Calculate Your Child Support Tax
No changes to how child support is taxed were made with the Tax Cuts and Jobs Act and alimony now functions like child support always has. If you opted to combine your child support and alimony into family support before the Tax Cuts and Jobs Act was passed, the taxes are calculated a little differently. The recipient of family support must report the income and the payor is able to claim the expense on their taxes.
Get Help From a Zealous New York Family Law Attorney Today
Don’t take risks and gamble with your future when getting a divorce. It’s important that you have seasoned legal representation at all times during the dissolution of your marriage. Call New York family and divorce lawyer Mary Katherine Brown today for a consultation at (718) 878-6886.Posted in : Divorce ,