How will divorce affect my income taxes this year? Senior Attorney Andy P. Miller of Pollack Law Group, P.C., answers five of the most commonly asked questions including filing status, exemptions and whether child support and/or alimony are taxable a

Five Common Questions about Filing Income Taxes During or After Divorce

The deadline for filing state and federal income taxes in Massachusetts is Wednesday, April 15. Senior Attorney Andy P. Miller of Pollack Law Group, P.C., answers some of the most common questions asked by people who are preparing to file their taxes during or after a divorce.

It’s tax time! For many, preparing and filing income taxes is stressful enough. If you are going through a divorce or were recently divorced, tax season can be even more stressful because of the changes in your marital status.

Let’s look at some of the most commonly asked questions:

What is my filing status?

The Internal Revenue Service (IRS) determines your marital status based on the last day of the year. If you were divorced on or before December 31, you may file as single or head of household. If you were still married on the last day of year, you must file either “married, filing jointly” or “married, filing separately.” If you have any concerns about which filing is best for you, or whether you qualify for a particularly filing status, be sure to consult an accountant.

Is the child support I received taxable income? Is the child support I paid deductible?

No. The IRS is very clear on this point: “Child support payments are neither deductible by the payer nor taxable income to the payee.” Keep in mind that while child support has no tax implications, there are plenty of expenses for your children that may qualify for tax deductions or exemptions, including certain medical, education and child care expenses.

Can I claim my child or children as dependents on my return?

The answer to this question typically depends on your divorce judgment or agreement, which often specifies which parent can claim a child or children, how many may be claimed (if there is more than one) and when the child or children may be claimed. For instance, in situations in which parents have three children, the final agreement often alternates which parent can claim two children in a given year and which parent can only claim one.

If your agreement or judgment does not address this issue, tax law states that the custodial parent is able to claim the children. The custodial parent, for the purposes of tax law, is the parent with whom the children reside for more than half the year.

Important tip: If you are a noncustodial parent but are claiming at least one child, be sure you and the other parent fill out IRS Form 8332.

Is alimony taxable? Are alimony payments deductible?

Yes. Alimony payments are deductible as long as the payments are specifically designated as alimony and are paid to your former spouse. Don’t forget that if you are receiving alimony, this taxable income and must be reported.

Are proceeds from the division of our property taxable?

Generally, no. Payments received as part of a division of the assets of your marriage generally are not considered taxable. It is important that the payment(s) received are expressly for dividing what you had and are not specified as alimony.

This is a quick overview of some of the most common questions asked by people going through or having recently gone through a divorce. If you have any concerns about your specific situation, consult an accountant or knowledgeable family law attorney.

About Attorney Andy P. Miller

Andy P. Miller is a senior attorney at Pollack Law Group, P.C., where he handles a wide variety of family law cases, including contested divorces, child custody and parenting plans, defense against restraining orders and modifications of child support and alimony. He graduated from the University of Wisconsin-Madison and the Massachusetts School of Law. He is licensed to practice law in Massachusetts

About Pollack Law Group, P.C.

Pollack Law Group, P.C., is the region’s premiere divorce and family law firm with more than 20 experienced attorneys, paralegals and professional staff serving clients throughout Massachusetts and New Hampshire. PLG corporate offices are located at 304 Turnpike Road, Southborough, MA 01772, and the firm has more than a dozen satellite offices and conference centers across the state.