Tax season is here. Do you know the top tax tips for divorcing couples? You may not be thinking about taxes if you are getting divorced, which can lead to potential problems in the future if you do not file your taxes correctly.
Your tax filing can have a significant impact on your finances. It is important to be aware of the tax implications during your divorce so you know what factors to consider before filing your tax return.
Taxes can be complicated, especially for couples getting divorced. Spouses often have many questions when it comes to their taxes when they are in the process of getting divorced or after their divorce has been finalized.
There are several tax tips that a divorce attorney can help explain. However, here are the top three tax tips for individuals getting divorced or those who have recently gotten divorced:
- Decide on a tax filing status. It is important that both spouses file the same status. This means that both spouses will have to file as single or married on their return. Evaluate and consider the tax implications before you decide on how to file.
- Claim children as dependents. Only one parent is allowed to claim the children as dependents. In most cases, the custodial parent will claim any children. Parents with joint custody can decide to alternate each year on claiming the children so both parties benefit from the tax deduction.
- Review your tax return. Both parties can be held liable in a joint filing so it is important to check your tax return for mistakes and any potential issues that may flag your return for an audit.
Divorcing couples in Birmingham should be aware of the top tax tips when going through a divorce. These are just a few basic tips to understand before you file your taxes, but they can help make sure your tax return is correct and prevent future issues.
Source: FindLaw, “Getting a Divorce? Top 3 Tax Tips to Consider,” Christopher Coble, Feb. 23, 2015