Tax Time after Divorce

3. UNDERSTAND THE RULES OF CLAIMING PAID CHILD SUPPORT.

This is where some people find themselves in trouble. That's because experts say people do their own tax returns and claim child support they paid to their ex-spouse, which is not deductible on taxes, unlike alimony. Nor does child support have to be claimed.

4. HOW WILL YOU FILE?

The status you choose when filing depends on what your status was at the end of the previous year. If you were already divorced and have physical custody of your children, you can file as Head of Household. If you were already divorced and do not have physical custody of your children, you would file as Single. If either of you has divorced or remarried within the same year, you would file as Married Filing Joint with your new spouse.  


5. BE PREPARED.

When it is time to file, bring all paperwork regarding the divorce, including any custody decrees, property transfers, etc. This is important because your tax preparer can not only look through your papers and let you know what deductions you can take, but also alert you to any potential pitfalls and/or obligations you may still have from the previous relationship.  

Oliver says this is one of the most important things you can do after a divorce. “If a joint return was filed each individual is responsible for paying the entire tax liability,” he said. “However, if one spouse does not report all of his or her income and the IRS subsequently assesses a tax liability, the other spouse may or may not be responsible for the payment of the tax. This is usually the case if the other spouse is innocent --- i.e. a spouse who meets certain tests, the most significant of which is the lack of knowledge of the unreported income earned by the other spouse,” he said.  

It is best to know before you are assessed any penalties or fines by the IRS. This is something your tax professional can help you with at the time of filing.  

Every situation is different, which is why it is important to work closely with a professional when filing your return, at least for the initial filing after you have gotten divorced. Working with a knowledgeable tax preparation firm as well as consulting with a tax attorney will ensure that you do not inadvertently break any rules when filing and take all of the benefits and deductions available to you.         


Lynda Moultry has been a freelance writer, editor and graphic designer for more than a decade and is the Specialty Products Editor for the Tallahassee Democrat, a daily newspaper in Florida’s capital city. Lynda is also the author of “101 Plus-Size Women’s Clothing Tips” and has written for a number of different national publications and Web sites.