No one gets married preparing to get divorced, so many newly divorced people are unprepared for the tax rules that they may now be subject to. Watch this TurboTax tax tip video for a few things to think about if you've gotten divorced.
The article below is accurate for your 2017 taxes, the one that you file this year by the April 2018 deadline, including a few retroactive changes due to the passing of tax reform. Some tax information below will change for your 2018 taxes, but won’t impact your 2017 taxes. Learn more about tax reform here.
Hi, I'm Richard from TurboTax with tax tips for divorced couples.
No one gets married preparing to get divorced, so many newly divorced people are unprepared for the tax rules that they may now be subject to. Here are a few things to think about if you've gotten divorced.
First, if you have children, only one parent may claim an exemption for them.
- Generally, the child must live with you during the year to claim them as a dependent, but a non-custodial parent can still take the exemption.
- They will need the custodial parent's permission and that parent must sign IRS Form 8332.
Second, child support is not tax deductible for the parent making the payments.
- If you are receiving child support payments, note that they aren’t considered taxable income. They also don’t count towards the Earned Income Tax Credit.
Three, you may now also have alimony payments.
- If you are receiving alimony payments, you will need to declare them as income on your tax return.
- On the flip side, if you're the one making the alimony payments, you may claim them as a tax deduction.
Unfortunately, most costs of the divorce process are not tax deductible, however attorney fees that relate to tax advice or obtaining alimony can be an itemized deduction.
For more information this and other tax topics, visit TurboTax.com.
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