As someone who is getting a
divorce, you have a lot on your mind, such as
child custody and
support, spousal support,
asset and debt division. Taxes on the other hand, may be the furthest from your mind but they shouldn’t
be. As you dissolve your marriage it’s important to consider the
tax effects of divorce, and how it impacts your wallet.
Factors such as name change and spousal support for example, can influence
different aspects of your taxes. That being said, here are some important
tax considerations you need to keep in mind now that you’re getting
Child Support. Are child support payments tax deductible? No, they are not. They are not
Paying Spousal Support. If your divorce decree says you will pay your former husband or wife spousal
support, you can deduct alimony paid to your former spouse, regardless
if you itemize deductions. However, if your divorce decree doesn’t
say you need to pay spousal support and you give your former spouse money
voluntarily or pay their bills outside of the divorce, these payments
are NOT tax-deductible; it has to be in the divorce decree.
Receiving Spousal Support. If you receive spousal support, it is taxable in the same year you receive
it. “Alimony is not subject to tax withholding so you may need to
increase the tax you pay during the year to avoid a penalty,” according
to the Internal Revenue Service. You can do this by making
estimated tax payments or by increasing the amount of tax that is
withheld from your normal wages.
Contributing to Your Spouse’s IRA. If your divorce is finalized by the end of the year and you contributed
to your spouse’s traditional IRA, unfortunately you cannot deduct
those contributions. However, you can deduct any contributions you made
to your traditional IRA, according to the IRS.
Changing Your Name. If you decide to change your name after you get divorced, don’t forget
to notify the
Social Security Administration (SSA) and file Form SS-5,
Application for a Social Security Card. If you fail to notify the SSA and the name on your tax return doesn’t
match the SSA’s records, it can cause processing problems and a
delay in your
We sincerely hope this post clears up a few questions you have about divorce
and taxes. For divorce representation in Las Vegas,
contact Leavitt Law Firm today!