Tax Preparation Tips During a Divorce
Getting divorced during tax season can add to the stress you’d normally experience during the divorce process at other times of the year. It’s important not to let your tax responsibilities go by the wayside while you’re also focused on the legal responsibilities you have in the divorce process.
Here are some tips to help you balance your taxes and your divorce in the first few months of the year.
- Keep an eye on the calendar: For your filing purposes, your marriage status as of December 31 will be your marriage status for the entire year. If you were not officially divorced as of December 31, you can still file as Married Filing Jointly. The calendar is also important to watch with regard to tax due dates. The closer April 15 gets, the less time you have to get all your paperwork complete.
- Gather account statements and documents: You’re going to need to gather as much information about your assets as you can for divorce anyway, so this should actually help you in the tax filing process as well. Get as much information as possible about your home, tangible assets, retirement accounts, investment accounts, loans and anything else you own of value.
- Think about your house: The IRS will exempt the first $500,000 of gains on the sale of a primary home if you’re married filing jointly, but just $250,000 for single filers. This may play a role in when you file for divorce and the tax strategies you employ.
- Consider children: A parent who has a child live with them for at least half a year and provides at least half the child’s support is capable of claiming that child as a dependent, which means they have access to certain exemptions and tax credits. That parent might also be able to use Head of Household filing status.
For more information about how divorce can affect your taxes, contact an experienced Long Island divorce lawyer at Bryan L. Salamone & Associates.