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Taxes and Divorce
Navigating your tax return is challenging in any situation and if you're facing your first return as a divorced person, you probably have even more questions. How do you determine who owes what tax? Do you need special forms? What do you need to know?
Filing Status
At the end of the tax year, if you are legally separated from your spouse, under a divorce decree, or have a separate maintenance contract with your former spouse, you will be considered unmarried by the IRS.
If you are still technically married but your ex-to-be was not a part of your household for the last six months of the tax year and you have a dependent child that you care for, you can file with a head of household status.
Liability on Joint Return
If you filed a joint return in the past and face penalties or interest that you believe your former spouse should be responsible for, the IRS offers some help.
You can ask the IRS to grant you a tax reduction called Innocent Spouse Relief, so that you won't be liable for tax problems of your former spouse.
Dependency Exemptions
After a divorce, the IRS typically grants the exemptions for dependents to only one parent. Usually, the parent who has custody of the particular child for most of the calendar year receives the exemption.
Alimony
In most cases, alimony and other maintenance payments count differently for each spouse. Every amount paid by the payer is tax deductible, every amount received by the recipient counts as income and is subject to tax. In 1984, new rules were made to govern payments, so different regulations apply to couples that divorced before that cut off date.
Child Support Payments
Different from alimony, fixed child support payments cannot be deducted on your tax return. If you have specific questions concerning the tax implications of a divorce, seek a licensed tax expert to assist you.
For more information about divorce, visit our partner LegalZoom. Here, you'll find a free, online legal library providing all the information and resources you need when considering divorce. The Law Library Topics provide general divorce information, and FAQs answer some of the most common questions people ask. These features, combined with the Glossary and Useful Resources, allow you to make sure your divorce decisions are informed ones.
LegalZoom is not a lawfirm and can only provide self-help services at your specific direction. Information contained above is subject to change and is not applicable to every state. Visit LegalZoom.com for specific state-by state-documents.
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