A Look at Filing Income Taxes After a Divorce

A divorce is going to change the way you’ve always done your federal and state income taxes, especially for the year immediately before your divorce is finalized. If on the last day of the year you’re still married, you can still file however you want. You may be able to file single or jointly depending on the various tax laws in your state. Obviously, no matter how much animosity there is between you and your ex-spouse, you don’t want to end up paying more in taxes just to spite your ex. You’ll need to reach a compromise that benefits that both of you.

Most people will benefit more by filing jointly. Most people save the most money this way. You’ll need to figure out which way is better since that’s not always the case however. If you file separately, you have to be cautious about the way you decide who reports both income and withholding that was taken. The income you earn before the split needs to be reported equally unless there is a prenuptial agreement in place. After you’ve been separated, you get to claim any income that you earn.

It’s also important that you consider the various properties that you have in your divorce settlement. For example, you don’t want to claim only 50% of the income from a rental property if you, in fact, separately own the title to the entire property. When it’s time to prepare tax documents, agree on things like various incomes and allocation of tax payments. If the two of you can’t agree on the details, then you’ll need to hire lawyers to do so for you.

Also, your agreements can’t violate any state or federal laws. Child support and alimony can be particularly tricky areas, so make sure you pay close attention to them. It doesn’t have to be that hard to reach a tax settlement if you follow the rules and are able to compromise with your ex. Your attorney or tax-preparer will be able to walk you through the steps so that you’ll be able to submit perfect returns, even if you’ve never done them in the past. Doc No. rjslhssld-sdg

Kristie Brown writes on a variety of topics from health to technology. Check out her websites on how to stop divorce and save your marriage

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