Things to Consider When Filing Taxes After Your Divorce

Once your divorce is settled, you might be thinking you are in the clear. However, many people start having a lot of questions when the time comes to file taxes. It can be especially difficult to figure out what to do if you and your ex-spouse are sharing custody of a child. There are several aspects of your tax forms to be mindful of, and you should seek out professional assistant if you require help figuring out how to file.

Filing joint taxes meant both you and your spouse claimed any children as dependents. However, after a separation, only one of you may claim all the child-related tax benefits for a child, including the dependency exemption. However, there is a special rule for divorced or separated parents or parents who live apart for the last 6 months of the calendar year. Under this special rule, the noncustodial parent may claim the dependency exemption for a child if the custodial parent releases the exemption.

Head of Household Status

There are certain qualifications that need to be met in order to achieve for head of household status following a divorce, which can come with specific tax advantages. First, you need to be considered legally single on the last day of the year. Even if you and your spouse were only legally separated on December 31st, then you would be considered single for the entire tax year. Additionally, you need to show you were paid more than what would be half of the cost of your home.

Alimony

If you are paying your former spouse alimony, then that is considered a tax deductible expense. You can continue claiming that for the years to come. Conversely, if you are the one getting alimony, then that is considered income, and you need to report it. However, you need to be certain that what you are paying or receiving is in fact alimony and not child support. Child support is not tax deductible, and it is not considered income.

Getting a divorce can make filing taxes even harder to understand. However, it is completely possible to figure out what forms to fill out, and there are plenty of deductions you can now qualify for. Once you get the hang of it, you will know exactly what to do for your taxes in the years to come.