Divorce and Taxes: Alimony Can Be Deducted on Your Filing
One major life event that has an impact on your taxes is divorce. When you and your spouse decide it is time to file for a divorce, your past tax filings and your taxes in general will be under a microscope. Even some of the specific elements to a divorce have a huge impact on your taxes — not just the divorce in general.
In this regard, we bring up the topic of alimony and taxes. Alimony is awarded in some divorces, granting one spouse financial compensation in the form of payments from the other spouse. this is usually awarded due to a financial imbalance brought about by the divorce, or to maintain a standard of living for one of the spouses in the wake of the divorce.
So how does alimony relate to taxes? Well, the paying spouse can actually use his or her alimony payments as a deduction on their taxes. This can be incredibly helpful come tax time. Alternatively, the spouse that receives alimony payments must include them in their income on their tax filing.
Now, it is important to note that many other financial aspects to divorce don’t necessarily allow the payer to deduct. Child support payments, for example, can’t be deducted on your taxes. Additionally, property, lump-sum and cash settlements relating to your divorce can’t be deducted on your taxes. If you have questions about tax filings and the many factors that are involved in a divorce, please consult with an attorney as soon as possible.
Source: FindLaw, “Alimony and Taxes,” Accessed Dec. 11, 2015
Tax Season Begin on January 19, Closes on April 18. As we prepare to flip our calendars from 2015 to 2016, we reminisce about the year that has come and gone. We talked about a lot of tax […]
What Penalties Are There For Filing Late or Carrying Unpaid Debt? On behalf of Brian Coggins of Coggins Law Office posted in Tax Delinquency on Friday, December 24, 2015. If you file your taxes late, or if you have tax debt that goes unpaid for a long time, then you will be subject to fines, […]
The Risks of Taking on the IRS Without Legal Help On behalf of Brian Coggins of Coggins Law Office posted in IRS on Friday, December 4, 2015. We’ve talked about a lot of critical tax issues on this blog in the past few months, We’ve outlined some important tips to know when you deal with […]
An Experienced Tax Attorney Serving Northern California
TELL ME ABOUT YOUR CASE
Coggins Law Office
9001 Foothills Boulevard, Suite 110
Roseville, CA 95747
+1 (916) 270-2895