If you're going through a separation or a divorce, you should know about the tax implications.
1. Who can file for alimony and child support deductions? Alimony is tax deductible for the person paying it. It's taxable income for the alimony recipient. Child support isn't taxable income for the spouse receiving it, and it's not deductible for the person who pays it.
2. Can I qualify for dependent child tax exemptions? The spouse who has physical custody of a child for at least half the year can claim it, if, among other requirements, the parents are divorced, separated or living apart for at least the final six months of the tax year.
3. Should I file as the head of the household? Only the parent who has physical custody of the child for more than half the time is eligible for this filing.
4. What about child care tax credits? Only the custodial parent can claim this credit.
5. Where can I get more information about filing taxes? The IRS has many publications for couples going through a separation or divorce.
Click here to read tax tips for divorced couples.
