How Should I File my Taxes During a Divorce?
Filing taxes through a divorce can leave you with lingering questions. When asking a legal professional, like any good family law attorney in Fulton County, GA, will tell you: it depends. For highly detailed and specific scenarios, you’ll need to consult with an accountant or tax professional for more information. In general, however, there are some things that remain consistent.
Family Law Attorney in Fulton County GA Advises Filing Separately
Suppose you’re still legally married but not yet given a final decree of legal separation by the court before the end of the calendar year. In that case, you can choose to file “Married, filing separately” to keep your records separate at the IRS. If you are legally separated by the end of the year, you’ll also file “Married, filing separately” as your legal marriage has not been officially ended by the court. Some spouses might be able to choose “Head of Household” under some conditions. If your divorce was formally finalized before the end of the calendar year, you would file as single, unmarried, or head-of-household based on your new situation.
Community Property States Rules and Marital Assets
Sometimes marital assets can receive a tax credit or deduction, but how are those shared when you’re no longer living together, yet the potential credit can be claimed for the year you were still legally married? The IRS has unique forms for this. Community property states cite that all assets and debts of each spouse fully belong to each other, whether the other person’s name was on the documents or not. A Fulton County divorce lawyer can make sure that specific language is added to your divorce decree, stipulating that you get your fair share of these tax credits if you qualify for them. Having this officially declared and ordered can help your CPA at tax time.
Child Support and Alimony Deductions
Many people get confused, thinking they can deduct child support from their tax filings. People are under the assumption that child support is tax-deductible because many financial institutions make a big deal about whether to choose to add child support as income to qualify for a loan. People applying for state benefits are also asked about their “child support income.” Those funds can be considered income in those cases, but it is entirely separate from the IRS and its rules. The IRS clearly states that child support is not tax-deductible, and it’s not considered income to the person who receives it for tax purposes.
Alimony, whether temporary or permanent, however, is considered income for the person receiving it. The person paying it will want to tell their CPA or another tax advisor because, under various rules, alimony paid to an ex-spouse can be deductible.
Child Tax Credits
A qualified Fulton County child custody attorney will be quick to tell you that the person who is awarded more than 50% custody, or the parent with whom the child lives for more than six months of the year, is the parent who can claim tax exemptions and credits on a tax return. In the cases where living arrangements are evenly split down the middle, it’s imperative that a Fulton County divorce & child custody lawyer put verbiage into your paperwork that spells out which parent gets the tax deductions in which years. Getting a divorce in Georgia Fulton County necessitates having these things spelled out clearly. It helps the IRS sort through stuff if the other parent accidentally claims it in the wrong year.
Contact Your Trusted Divorce Attorney in Fulton County GA
The entire team at North Georgia Family Lawyers, LLC is here for our community members, even when it means chasing down some information about taxes. We don’t want you going through this confusing and stressful time alone. Please contact us today for an appointment!