How Will a Divorce Affect My Taxes?
If you are facing a divorce, there are a lot of moving parts, and your taxes may not be getting the attention that they deserve. The fact of the matter is, however, that the tax implications of divorce can be considerable, and the time to think about them is before your divorce is finalized. If you have tax-related divorce concerns, consult with an experienced Georgia divorce attorney today.
When It Comes to Divorce, There Are Wide-Ranging Tax Implications
When it comes to taxes and your divorce, there is a lot to consider.
If your divorce is not finalized in the State of Georgia by December 31 of the year in question, you will likely file taxes for that year as a married person (even if you file separately). Even if your divorce is finalized on December 30, however, you are considered unmarried as far as federal taxes for the year are concerned.
For any divorce decree entered into after January 1, 2019, alimony is no longer taxed as income for its recipients. Further, those who pay alimony no longer receive a related tax deduction.
Only one of you can claim the considerable tax exemptions for dependent children each year. Some parents share these exemptions by splitting them according to even and odd years (or by any other agreed-upon plan). If you have no plan in place, however, the right to claim the children as tax exemptions goes to the primary custodial parent.
Head of Household
Even if your divorce is not final by the end of the year, you might qualify as head of household if the following apply:
- You and your spouse lived apart for at least the last half of the year.
- You paid for more than half of the expenses related to maintaining your home for the last year.
- You have a dependent to claim.
- You file your taxes separately from your spouse.
Joint and Several Liability
If you are going through a divorce and it isn’t finalized by the end of the year, you are jointly responsible for that year’s taxes. If you are filing separately, for example, and your soon-to-be-ex – who makes considerably more than you – fails to pay his or her tax liability, the IRS can come after you for the taxes due.
Taxes are complicated in the best of times, but if you’re going through a divorce, you can expect them to be that much more so.
Reach out to an Experienced Georgia Divorce Attorney Today
Divorce has a tendency to be overwhelming, but just because your taxes may not be due for a while, you should not lose sight of the important tax considerations that are related to divorce. The practiced divorce attorneys at Banks, Stubbs & McFarland in both Forsyth County and Cumming, Georgia, have the experience, legal insight, and focus to help ensure that the tax implications of your divorce do not work against you. For more information about how we can help you, please don’t hesitate to contact us online or call us at 770-887-1209 today.