A recent separation or divorce presents a number of complications, not the least of which is tax filing. With so many issues surrounding alimony, community property, dependents, and liability—to name a few—filing as a newly separated or divorced taxpayer can feel overwhelming. There are several rules that most new divorcés are simply unaware of.
For instance, did you know that alimony is tax deductible if you’re the one paying? Conversely, alimony counts as taxable income for the one receiving the payments.
Did you know that married taxpayers in the state of Wisconsin are subject to community property laws?
Or how about this: Do you know the basic rules for determining which parent may claim a child as their dependent? Generally, the parent who has custody of the child is the only one who can claim dependency. However, the other parent may also claim exemption if there’s a signed statement in which the custodial parent assigns dependency to them. In other circumstances, there may be a different agreement in which multiple taxpayers provide shared support of the dependent and decide among themselves which taxpayer will claim the child as a dependent.
And did you know that if you filed taxes jointly while you were married, you are both individually liable for any tax and interest or penalties due?
You get the point. The list of tax laws regarding divorced or separated couples goes on and on, while the laws get more and more complex and nuanced. Fortunately, the professionals at Taxation Solutions, Inc. are here to help. Give us a call and talk to one of our specialists about your unique situation before you file so you can be fully aware of all the rules and exceptions that apply.
Serving Milwaukee and beyond, the tax help professionals at Taxation Solutions, Inc. solve tax problems and assist with thorough tax preparation in order to meet all of the area’s various tax needs.