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The Law Offices of James A. Cuddy, LLC

Call To Find Your Way Forward 203-583-8256

Call To Find Your Way Forward 203-583-8256

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Changes to tax returns after a Connecticut divorce

Whether someone is married or divorced in New Haven, both scenarios will affect their tax liability. Some important tips citizens can keep in mind when filing an income tax return at the end of the year can help decrease the stress of tax time.

The appropriate filing status, married or single, needs to be checked when completing paperwork. The status will determine most of the amounts on the income tax form as well as the exemptions and allowances. It will also determine the tax bracket of each person. The filing status is determined by the date of the finalization of divorce. If the divorce was finalized by Dec. 31 of the tax year, then the status will be single. However, a single person can still file as the head of a household if children and other dependents live with them. If the couple is separated but still married, then the status would be married filing jointly or separately. When filing a joint return, both people are liable for taxes even if only one person was employed.

Different expenses can be deducted on the tax return. The costs of a divorce cannot be deducted, but any legal fees relating to tax returns can be counted deducted. Other issues are alimony and child support. Any alimony received must be reported as taxable income while any alimony that is paid can be deducted. However, child support is not counted as income or deductible. Names must match those on social security cards. If the names don’t match, then the IRS could reject the return.

After going through a divorce, the process of filing a tax return changes. Different deductions as well as credits become available. A divorce attorney can help someone consider the tax implication of a settlement during the divorce process to make sure that the client is getting the best deal.

Source: Yuma News, “How Marriage And Divorce Can Impact Your Taxes”, April 05, 2014