Video: Tax Tips for Divorced Couples
Hello, I'm Jeremy from TurboTax, with some information for divorced and legally separated taxpayers.
Let's face it, the last thing you're thinking of when going through a divorce is your taxes. But once the dust settles and everything is finalized, it's time to catch up with some new tax rules you maybe subject to now.
If you have children, you may wonder which parent gets to claim their exemptions?
- Although the general rule is the child must live with you during the year to claim them as a dependent, a non-custodial parent can still take the exemption.
- Generally, all you need to do is get the custodial parent's permission and have them sign an IRS Form 8332. But if you are the custodial parent, you may not want to give up the potential tax savings.
- Either way, only one parent can claim the exemption.
Alimony payments may also present a new type of income or tax deduction that you have never dealt with before.
- If you receive these payments, it is taxable and must be included in your income.
- However, if you're the one making the alimony payments, you can claim a tax deduction for them.
Unfortunately, sometimes getting a divorce can be an expensive process. Although most costs are not deductible, you can however deduct attorney fees that relate to tax advice or for obtaining alimony.
For more tax tips and guidance, visit TurboTax.com.