Can I Deduct Any of My Divorce Costs?
Divorces can be expensive and often bring about significant changes to your finances. If you are going through a divorce, you may be wondering if any of the costs associated with it, such as court and attorney fees, are tax deductible. In general, the IRS does not allow costs associated with a divorce to be deducted from your income. Legal advise, legal counseling and the like are not considered qualifying…Read More
How Will My Finances Change After a Divorce?
Everything changes after divorce, not least of which are your finances. Support orders, tax implications and a new living arrangement can mean you have to make a lot of changes in your spending habits. The biggest changes you can expect after divorce are either paying or receiving support and having a different asset profile. You will also have to set up a new household, which is especially important when minor…Read More
Tax Breaks for Parents: What You Can Expect After Divorce?
One of the many things that will change after divorce is your taxes. You will have a separate filing status and may be in significantly different financial circumstance. Dependency Exemptions One thing that can change is your dependency exemptions. There are many tax breaks for parents. You can claim a dependent on your taxes to reduce your overall taxed income and take advantage of possible tax credits. Some expenses from…Read More
How is Spousal Support Taxed?
With divorce comes many changes to your finances. Your taxes will be no exception. There are numerous tax regulations you should be aware of when getting a divorce. Your finances after divorce will reflect any support orders or property settlements in effect. Child support is not considered income for tax purposes and thus is not taxed to the payee nor is it deductible to the payor. On the other hand, spousal…Read More
Is Child Support Taxed?
Child support is the basic financial responsibility of all parents of minor children. Parents, whether together, separated, or divorced all carry with them a responsibility to care and provide for their children. How much you will have to pay or will receive depends on how much residential time you spend with your child and the financial resources of both parents. Child Support is Not Taxable Child support is not income…Read More