Overlooked Tax Breaks for Newly Divorced

Tax time is upon us! Most of us get bogged down with the dread tax season often brings. And with a divorce, your tax dread might grow even worse.

Once your divorce is finalized, many line items will most likely change. My clients often ask what to expect in their tax filing status. Here are a few things I share with them that they often overlook:

• If your divorce was finalized by December 31^st, 2022, you can file divorced separately
• The child tax credit will be awarded to the parent who had the most custody time of the child unless other arrangements have been detailed in the final divorce agreement
• It may be possible for the person who pays the alimony to deduct these payments on their taxes
• Deducting your child on your taxes may be possible if you had custody of your child the most
• If you are paying for health insurance, these premiums may be able to be claimed
• Keep detailed records and documentation that can support your claims

I get that taxes can be very confusing. Every year the IRS changes and adds line items, credits and deductions into the mix, but it is your responsibility to handle your tax liabilities promptly each year.

Now mind you, I am not a tax or financial expert, but I always suggest couples who are divorcing through collaborative divorce or mediation work with a financial neutral who is versed in family law – they can be invaluable and show each of you how your financial and tax liability will change after your divorce has been finalized.

For over 17 years working as a Family Law Attorney/Mediator in California, Kevin Chroman has helped numerous couples reach cooperative agreements on divorce, child custody and spousal support through mediation and the collaborative law process.

Reach an agreement with your spouse in the peaceful, cooperative environment created by the Law Office of Kevin J. Chroman. For a free consultation, contact us today!

Now offering Online Dispute Resolution (ODR).

Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental or tax professional to determine what will work best for your situation.