Whether you ended your marriage and have uncertainty with regard to filing taxes or you are preparing to get a divorce and want to understand how this could affect your tax return, you need to carefully look into any divorce-related tax issues that could impact you. Divorce as well as taxes generate a considerable amount of anxiety for many people, and it is pivotal to work through these matters carefully in order to reduce stress and prevent financial difficulties.
When it comes to divorce as well as taxes, everyone is in a unique situation. Therefore, you must go over your individual circumstances and your options.
Child support, alimony and taxes
Whether you pay or receive child support, the Internal Revenue Service says that child support payments are not taxable or deductible. However, the IRS says that certain alimony payments (under divorce instruments executed in 2018 and earlier) are taxable and deductible. It is crucial to keep this in mind when approaching your taxes after a divorce.
Other divorce-related tax matters
Ending your marriage could affect your taxes in other ways. Your filing status could change, and some people have to work on taxes without their former spouse’s help. For example, you could have to take care of your taxes for the first time since you will no longer file a joint return with your ex. Additionally, if you change your name or have changes regarding your health care, this could impact your taxes.
In order to avoid unnecessary financial hurdles, make sure you carefully approach the divorce process and your taxes.