Tax return

Divorce and Taxes: What You Need to Know

If you are one of the individuals who went through a divorce last year, you are probably wondering how you will file taxes this year. Chances are, you may even be filing your own tax return this year, which is something you have never done before. Today, we answer some commonly asked questions regarding taxes and divorce. 

What Is Your Tax Filing Status After Getting Divorced? 

Your marital status at the end of the year will determine how you file your tax return. If you were divorced on Dec. 31 of the tax year, then you will file separately. If you are the custodial parent for your child, you may be able to qualify as head of the household.

If you are confused, speak with an accountant to determine what your tax filing status will be for the year. 

Is Child Support Taxed?

If you are paying child support in Texas, know that your payments are not taxable. The IRS considers them personal expenses that your spouse will use to take care of your child. 

You might be able to claim some medical expenses though. Speak with your tax preparer or accountant to determine if this is true. Make sure to keep any receipts, electronic or paper, to show proof of these expenses. 

If you are receiving child support, this is not considered taxable income. 

Who Can Claim the Child on Their Tax Return? 

The parent who has primary custody of the child, has the right to claim them on their tax return. What that means is that if you have your child 60 percent of the time, and your ex-spouse has the child 40 percent of the time, you are the custodial parent. If each parent spends an equal amount with the child, the parent who has the higher income should claim the child. This parent can gain a larger tax break from doing so. 

You could also speak with your ex-spouse and decide that he/she could claim the child. Some parents do this if the custodial parent has little taxable income compared to the non-custodial parent. 

Can Both Parents Claim the Child on Their Tax Return?

It is not in your best interest to have both parents claim the child. The IRS will reject your claim and you will need to refile. 

Do you require assistance with your divorce or a modification that might impact your tax filings for the year? Contact us online for support .

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