Questions about your taxes are common during and after the divorce process. Luckily, your attorney can help guide you through the process.
Be sure to consult your family law attorney to clarify anything that might be troubling you. Below, are the 7 most common questions during and after divorce is resolved.
Which parent claims the dependency exemption for the children? California federal law allows the custodial parent to to claim the exemption for all children on their income tax returns.
However, the parents can choose any route for the allocations that they want. It is actually recommended that the spouses agree on the dependency exemption. This way, both parties can save on their taxes.
Is the support I receive taxable? The spousal support awarded to you is taxable income. It is deductible on tax returns for the paying spouse. Child support, however, comes out of post-tax dollars, so it can not be deducted or included on a tax return.
What if I disagree with my spouse on support paid? The best way to resolve this sort of dispute is to prevent it. Try to keep accurate records of each payment. Records should include the date and amount, and you should record the payment even if you did not pay or receive it.
What if my spouse incorrectly files our taxes? California law put in place an “innocent spouse” status for this express reason. With these laws, innocent spouse relief can be obtained even years after your divorce. If you feel you qualify innocent spouse relief, consult your attorney.
Can I deduct accountant and attorney fees? You may be able to deduct attorney and accountant fees for both state and federal taxes; confer with your attorney for advice.
Do I need to file separately if the divorce isn’t final yet? It varies on the situation, but often it is recommended that you file married but separate, or file jointly with your spouse. Consult your accountant to determine if you need to file separately; filing separately may be necessary if you are concerned about your spouse accurately declaring their income, or if your spouse is self-employed.
Are there other resources available for preparing my income tax forms? Visit the IRS website and obtain the Tax Information for Divorced and Separated Individuals booklet before preparing your income taxes.
Ensure you understand anything and everything that will affect you before and after divorce, schedule an appointment with a divorce attorney to get a clear understanding about the divorce process.
