In a divorce, it is common that one spouse’s qualified retirement plan benefits are often used to pay property settlements. Qualified plan benefits paid to a nonspousal alternate payee do not receive special tax treatment and are taxable to the employee-participant. A “qualified domestic relation order” (QDRO) A “qualified domestic relation order” (QDRO) is… Read More »
Childcare Costs with Divorced Parents Only the custodial parent gets to claim childcare costs. Like someone mentioned there’s only parent parent that claim the child since there’s an odd number of days so one of you have to decide who’s the custodial parent for that particular child. Tax Return Rejected For Child Care Expenses… Read More »
What happens when a couple files a tax return as married and then divorces? It is possible to split a tax refund after a couple who is previously married later files to divorce. There could be many reasons when they want to split the tax refund after being married. When married couples divorce or separate, or… Read More »
There are several different types of tax filing statuses that people must be aware of and use correctly when filing their tax return. A taxpayer can select a tax filing status by checking the appropriate box directly below their name on page 1 of Form 1040 or Form 1040A. The IRS form says says “Filing Status”… Read More »
It is possible to file as a single taxpayer, preferably using head of household rates, even though you are legally married to another person. However, in order to be legally married and file as a single taxpayer, certain rules must be met: If the following tests are met, you can file as “single” or… Read More »
How to deduct legal fees in divorce? Legal fees in connection with a divorce or separation are treated specially for tax purposes. The overall rule regarding the deductibility of legal fees in divorce are that general legal fees relating to a divorce or separation are nondeductible personal expenses. However, with careful planning and careful documentation… Read More »
How should a taxpayer file their tax return during a divorce? Should a taxpayer file a single, joint, or married filing separately-for federal income tax purposes during the pendency of your divorce/separation proceedings? There are many tax considerations to a divorce that taxpayers should be aware about and filing status is one of them. Making… Read More »
Change in Alimony Information It is important to take tax considerations into any changes ex-spouses intend to make in support or alimony agreements or decrees. A change in a divorce decree could significantly change the amount of an alimony deduction. Change in Divorce Decree and Change in Alimony If you agree to increase what… Read More »
Information about Deducting Alimony on Tax Return Divorced taxpayers are subject to several different sets of tax laws that will affect how certain payments made pursuant to a divorce decree are deducted. Very careful planning by the divorce attorney is needed to ensure that the proper alimony deductions will lead to the greatest tax benefit. Alimony… Read More »
If you have recently gotten married or plan to get married in the near future, the IRS has some tips to help you avoid stress at tax time. Report any name change to the Social Security Administration, so your name and SSN will match when you file your next tax return.