Divorce impacts all areas of life, including finances. During tax season, it’s important to understand how a divorce could influence how you file your 2011 taxes.
A Douglasville Divorce Attorney Can Determine Alimony Deduction
If you are paying alimony, it is typically deductible on your taxes. This is true even if you don’t itemize your deductions. Alimony, also known as spousal maintenance, is considered an above-the-line deduction. There are a few requirements:
- If you are divorced or legally separated, both parties cannot be resident of the same household for the deduction to apply.
- Payments must be in cash.
- The payment must not be considered child support.
Custody and Your Taxes After a Douglasville Divorce
The custodial parent is the one who can claim children as a dependent after a divorce; this is typically determined by who has custody most throughout the year.
But these days there are many creative custodial agreements. For example, what if it’s 50-50? Well, that’s where it gets complicated. Both parents can’t claim children as dependents. This is where an attorney can come in handy to help you sort out the tax implications of child support and divorce.
The Date of Your Divorce Matters
If you were married on December 31st, you will need to file as married, even if you get divorced before filing this year. Likewise, if you got divorce in December of 2011, you won’t be able to file as married for your 2011 return. This is true even if it would save you money to do so.
If you filed for divorce in Georgia in 2011, or are thinking about doing so in 2012, it’s best to hire an experienced Douglasville divorce attorney. Miller & Hightower, Attorneys at Law, have the knowledge and experience to help you navigate the tax implications of your divorce.