Kim Finkle, MBA, Financial Advisor Having a conflict with your co-parent or partner? - Start Neutral Mediation

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• Co-parent Tax Planning Tips for Maximizing Savings
• Tax Filing After Divorce

How should I file my taxes after getting divorced? 

The date of the judge's final order for a divorce or legal separation determines your filing status. If you had received a decree on or before December 31st of the tax year, then you cannot file jointly. On the other hand, if the divorce becomes final after December 31st, you can file jointly as a married couple or separately as married. In this case, you cannot file as a Head of the Household or Single. Tax filing status options:

 

Filing Jointly

You can file together as married if your divorce or legal separation is not final. Filing jointly can lower your taxes since you may be eligible for several tax credits. The standard deduction for a married couple is twice as much as a single tax filer and almost 33% more than heads of the households. You can also be eligible for child tax credit and other deductions such as a mortgage. It can translate into the savings of several thousand dollars that you can split 50/50 once the finances are separated.  

 

The downside of filing jointly is that you may have to contribute towards the taxes even if you owe lesser than your ex. It gets even worse if your ex decides not to pay the taxes. You will be equally liable for any late payment penalties and interest.  

 

However, you can get out of any of your ex's tax obligations by filing the IRS form 8857 that allows you to request relief as an innocent spouse.

 

Make sure to sign a written agreement with your spouse on who will be receiving the tax refund.

 

Married Filing Separately

If you are still married and you and your ex decide to file separately, you can do so. The benefit of this approach is that you avoid sharing any tax obligation with your spouse. The biggest drawback of this approach is that you can end up paying more taxes than you would have paid otherwise. It also requires cooperation from your ex when choosing deductions. Both of you have to agree on taking either standard or itemized deductions. In other words, one cannot claim standard deductions while the other one is claiming itemized deductions. If you choose itemized deductions, you can only claim what you contributed. For example, if you and your ex together paid the mortgage and you paid only 30%, then you can get a tax break on only 30% of the mortgage interest. Your ex is eligible for the remaining 70%. The only exception to itemized deduction limit is any medical expenses paid from a joint account. You may not qualify for earned income higher education tax credits while filing separately.

 

Head of the Household

If your divorce or legal separation is final by December 31st, you may be eligible to file taxes as the head of household. IRS considers you unmarried if you are single, divorced, or legally separated. You can qualify as the head of the household if you:

• Paid more than half of the costs of maintaining a household for the year. Expenses such as real estate taxes, home insurance, repairs, utilities, and food can qualify you for this status.
• You lived with a child or other qualifying dependent for more than six months of the year.

 

When should I change my tax filing status after divorce?

The timing for modifying your tax filing status following a divorce depends on your individual circumstances and the regulations in your country. In the United States, for instance, your tax marital status is determined as of December 31 each year. If your divorce is finalized before the end of the year, you typically file as single for that tax year.

Here are some general guidelines:

1. Divorce Finalized Before December 31

• If your divorce is concluded before December 31, you are considered unmarried for the entire tax year. You would usually file as Single or Head of Household, depending on your situation.

 

2. Divorce Finalized After December 31

• If your divorce is completed after December 31, you are still treated as married for that tax year. In such cases, you can choose to file jointly with your ex-spouse or, if eligible, as Head of Household (subject to specific criteria) or as Single.

 

3. Amicable Separation Agreement

• If you and your ex-spouse have a separation agreement, it's important to adhere to the agreement's tax guidelines. Understanding the terms of any legal agreement and their impact on your tax status is crucial.

 

4. Consult with a Tax Professional

• Seeking advice from a tax professional or accountant is recommended. They can offer personalized guidance based on your situation, helping you choose the optimal filing status and ensuring you take advantage of available tax benefits.

 

5. Update Your Withholding

• If you're changing your filing status, consider updating your withholding with your employer to reflect your new status. This helps avoid overpaying or underpaying taxes throughout the year.

 

It's essential to be aware of specific tax laws in your jurisdiction, as they can vary. Additionally, major life changes like divorce may have broader implications for your financial situation, making professional advice a prudent choice.

 

Does the IRS know when you get divorced?

The IRS (Internal Revenue Service) does not automatically receive information about your divorce. When you file your income tax return, you are responsible for providing accurate and up-to-date information about your marital status. This includes indicating whether you are single, married, or the head of a household.

 

If your divorce is finalized by the end of the tax year (December 31), you would typically file as a single individual. It's important to accurately reflect your marital status on your tax return to avoid any potential issues.

 

However, keep in mind that while the IRS may not be directly informed about your divorce, certain changes in your financial situation due to the divorce, such as alimony payments or child support, may be reported to the IRS by the parties involved. For example, the person paying alimony may be able to deduct those payments, while the recipient may need to report them as income.

 

It's crucial to maintain accurate records and consult with a tax professional to ensure that you are fulfilling your tax obligations appropriately after a divorce. Additionally, if you have any questions or concerns about your specific situation, it's advisable to contact the IRS or seek professional advice.

 

Can you get audited by IRS after getting divorced?

Experiencing a divorce is often a challenging process, and the last thing anyone wants is to face a tax audit as a reminder. With over 50 percent of marriages ending in divorce, the likelihood of an audit is not uncommon. The IRS may become aware of potential audit triggers through the required forensic audit in divorce proceedings, exposing hidden assets and undisclosed income.

 

Forensic accountants report facts about income and assets to determine equitable distribution, and judges are obligated to report any inconsistencies to the IRS. The IRS has a three-year window to audit finances during the marriage after a divorce, with potential extensions for discrepancies over 25 percent or in cases of fraud, which could result in an indefinite audit period.

 

If innocent parties face an audit due to an ex-spouse's actions, they may seek relief through options like Innocent Spouse Relief, Separate Liability Relief, or Equitable Relief. Innocent Spouse Relief is applicable when a spouse fails to report income or claims improper deductions, providing relief from additional owed taxes. Separate Liability Relief allocates additional taxes between separated spouses, with each responsible for their share. Equitable Relief is an option when the correct amount was reported, but taxes weren't paid.

 

Qualifying for relief depends on the specifics of each case, emphasizing the importance of discussing tax scenarios with a divorce attorney or seeking professional advice from an accountant familiar with such matters.

 

How do divorced parents file taxes?

Divorced parents have the option to alternate claiming the child tax credit either by filing Form 8832 every other year or by ensuring their child qualifies as a dependent for each parent in alternating years. The custodial parent can use Form 8832 to waive the child tax credit, allowing the noncustodial parent to claim it without having the child as a dependent. However, this form only applies to the child tax credit and additional child tax credit for a specific year and doesn't grant other filing benefits. Alternatively, parents can ensure their child qualifies as a dependent for each parent in different years, requiring the child to live with a parent for over six months, with that parent providing at least half of the child's support.

 

Who can claim children as dependents after divorce?

Only the custodial parent can claim children as dependents and qualify for tax deductions and child tax credit. A custodial parent is the one who takes care of the child regularly, and the child spends more nights with them than the other parent in a year.  

 

As a custodial parent, you can claim the child as a dependent. It also means that you claim the following credits:

• Earned income tax credit (EITC)
• Child care credit 
• Dependent care credit

 

As a custodial parent, you may also be eligible for the head of the household status. That can result in a higher tax deduction.  

 

The noncustodial parent can't claim a child as a dependent even if they paid child support. They cannot take a tax deduction for child support either. The law requires both parents to take care of the child. In the case of a noncustodial parent, they are paying for their share of the child's living expenses to the other parent.   

 

As a custodial parent, you do not need to declare any child support as income. Also, be very careful about signing IRS Form 8332 if the noncustodial parent or their lawyer asks you to do so. By signing form 8332, you give up your right to claim your child as a dependent. It allows the noncustodial parent to claim your child as a dependent. You can reverse it only on the following tax year.

 

On the other hand, depending on your income, form 8332 may not matter much since the Trump tax plan eliminated exemptions for dependents in favor of a higher standard deduction.  

 

Can divorced parents each claim different children as dependents?

Yes, divorced parents can each claim different children as dependents on their tax returns, provided they meet the qualifying criteria set by the IRS. The key factors to consider include:

1. Dependency Qualifications

• To claim a child as a dependent, the child must meet certain criteria, such as age, relationship, residency, and financial support. Generally, the child must be under the age of 19 (or 24 if a full-time student), be related to the taxpayer, live with the taxpayer for more than half the year, and not provide more than half of their own support.

 

2. Agreement or Court Order

• The parents may decide among themselves or through a court order as part of their divorce agreement how they will claim the children as dependents. This may involve each parent claiming a specific child or alternating the dependency claim between tax years.

 

3. IRS Form 8332

• If the custodial parent agrees to release the claim to a child's exemption, the noncustodial parent can use IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, to attach to their tax return. This allows the noncustodial parent to claim the child as a dependent.

 

4. Communication and Agreement

• It's important for divorced parents to communicate and agree on how they will handle dependency claims to avoid conflicts and ensure compliance with tax laws.

 

While each parent can claim different children as dependents, it's crucial to adhere to the IRS guidelines and any agreements or court orders in place. Seeking advice from a tax professional or attorney can be helpful to ensure that the arrangement aligns with tax regulations and any legal agreements.

 

What happens if both parents claim the same child as a dependent?

If both parents who are divorced claim the same child as a dependent on their tax returns, it can lead to complications and potential issues with the IRS. The IRS generally allows only one parent to claim a child as a dependent in a given tax year. Here's what could happen:

1. Rejected Tax Returns

• If both parents claim the same child as a dependent on their separate tax returns, the IRS may reject one or both of the tax returns. The IRS has systems in place to identify instances of duplicate claims for dependents.

 

2. IRS Notification and Resolution

• The IRS may notify both parents about the conflicting claims and request additional information to determine the correct claim. The parents may be asked to provide evidence of custody arrangements, support provided, and other relevant details.

 

3. Resolution Through IRS Rules

• The IRS has specific rules to determine who can claim a child as a dependent in cases of divorced or separated parents. Generally, the custodial parent (the one with whom the child lived for the greater part of the year) is eligible to claim the child as a dependent. However, there are exceptions, and certain release forms (such as IRS Form 8332) can allow the noncustodial parent to claim the child.

 

4. Penalties and Adjustments:

• If the IRS determines that one parent erroneously claimed the child, the incorrect claimant may face penalties, and the tax return may be adjusted accordingly. The IRS may recalculate tax liabilities and issue refunds or bills accordingly.

 

To avoid these complications, it's crucial for divorced parents to communicate and decide on a clear arrangement for claiming dependents. If there's a disagreement, legal documents such as divorce agreements or custody orders may be used to determine the rightful claimant. Seeking advice from a tax professional or legal advisor can help in understanding the specific rules and avoiding potential issues with the IRS.

 

How does the IRS know who the custodial parent is?

The IRS determines the custodial parent based on the rules outlined in the tax code. The custodial parent is the one with whom the child lived for the greater part of the year. The IRS uses specific criteria to identify the custodial parent for tax purposes:

1. Residence Test

• The custodial parent is the one with whom the child lived for the greater number of nights during the tax year. If the child spends an equal number of nights with each parent, the custodial parent is the one with the higher adjusted gross income (AGI.

 

2. Release of Exemption

• The custodial parent is generally entitled to claim the child as a dependent and receive associated tax benefits, such as the Child Tax Credit and the Earned Income Tax Credit. However, the custodial parent can release the claim to the noncustodial parent by filing Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.

 

3. Divorce Decree or Separation Agreement

• The IRS may also consider the terms of a divorce decree or separation agreement in determining the custodial parent. If the divorce decree or agreement specifies which parent is entitled to claim the child as a dependent, the IRS will typically follow that agreement.

 

It's important for divorced or separated parents to communicate and decide on the appropriate allocation of tax benefits. Legal agreements, such as divorce decrees or separation agreements, can play a crucial role in determining the custodial parent for tax purposes.

 

If there are disagreements or uncertainties, it's advisable to seek guidance from a tax professional or legal advisor who can provide assistance based on the specific details of the situation. Keeping accurate records of custody arrangements and any agreements is essential for resolving potential issues related to the determination of the custodial parent for tax purposes.

 

Can you get a tax deduction for alimony?

If you are paying alimony or spousal support to your ex, you may be eligible for a deduction. IRS allows you to deduct alimony if the court ordered it before 2019. Your former spouse is required to report as an income. However, if it was ordered in 2019 or after, you can no longer claim a deduction. Your spouse is no longer required to report it as an income.

 

Can I claim my ex-wife as a depedent?

In general, you cannot claim your ex-wife as a dependent on your tax return. The IRS has specific rules regarding who qualifies as a dependent, and former spouses do not meet the criteria.

 

However, if you have children with your ex-wife and meet certain conditions, you may be eligible to claim your children as dependents. The IRS provides guidelines for claiming dependents, and these typically include factors such as the child's relationship to you, residency, age, and financial support.

 

If you are providing more than half of the financial support for your children, have custody or meet certain residency requirements, you may be able to claim them as dependents. Additionally, if you and your ex-wife have a written agreement or court order specifying who can claim the children as dependents, that agreement will usually be honored for tax purposes.

 

It's essential to carefully review the IRS rules and consider seeking advice from a tax professional to ensure that you comply with the regulations and claim dependents correctly on your tax return.

 

Can I file taxes as single if my divorce is not final?

If your divorce is not finalized by the end of the tax year (December 31), you generally cannot file as "single" for that tax year. Your marital status for tax purposes is determined based on your status as of the last day of the tax year.

Here are some options based on your marital status during the tax year:

1. Married Filing Jointly

• If you are still legally married by December 31, you can choose to file a joint tax return with your spouse. This status may provide certain tax benefits, but both spouses are jointly responsible for the tax liability.

 

2. Married Filing Separately

• Even if the divorce is not final, you can choose to file as "Married Filing Separately." Each spouse reports their own income and deductions, and they are responsible for their individual tax liabilities.

 

3. Head of Household (if eligible)

• If you meet certain criteria, you may qualify for the "Head of Household" filing status even if your divorce is not finalized. Generally, you must have paid more than half the cost of maintaining a home for a qualifying person, such as a child.

 

It's important to note that the specific rules and eligibility criteria can vary, and tax laws may change. Therefore, it is recommended to consult with a tax professional or accountant who can provide guidance based on your individual circumstances and the latest tax regulations. They can help you determine the most advantageous filing status and ensure compliance with tax laws.

 

How capital gains and losses are treated after divorce

If you or your ex incurred capital gains, then both of you are liable for capital gains taxes unless you are filing separately. Similarly, both of you can split any carryover losses unless you are filing separately.    

 

The treatment of capital gains and losses after a divorce can vary based on the specifics of the divorce settlement and how assets were divided. Here are some key considerations:

1. Division of Assets

• During divorce proceedings, marital assets, including investments and real estate, may be divided between the spouses. The transfer of assets between spouses as part of the divorce settlement is typically tax-free.

 

2. Capital Gains Taxes on Transfers

• If, as part of the divorce settlement, one spouse transfers appreciated assets to the other, the receiving spouse generally assumes the original cost basis of the assets. This can have implications for future capital gains taxes when the receiving spouse sells the assets.

 

3. Jointly Owned Property

• If you and your ex-spouse jointly own property with unrealized capital gains, the division of that property may trigger capital gains tax consequences. This depends on the specifics of the divorce agreement and how the property is transferred.

 

4. Sale of Marital Home

• If the marital home is sold as part of the divorce, special rules may apply to the exclusion of capital gains taxes. As of my last knowledge update in January 2022, the IRS allows a married couple filing jointly to exclude up to $500,000 in capital gains from the sale of their primary residence. However, this exclusion may be reduced for individual filers.

 

5. Qualified Domestic Relations Order (QDRO)

•  In the case of retirement accounts, such as 401(k)s or IRAs, a Qualified Domestic Relations Order (QDRO) may be necessary for the tax-free transfer of assets. Without a QDRO, transferring retirement funds to an ex-spouse could trigger taxes and penalties.

 

6. Tax Implications of Asset Sales

• If assets are sold as part of the divorce settlement, the capital gains or losses from those sales will typically be reported on the individual tax returns of the spouses. Each spouse is responsible for their own tax liability arising from the sale of assets.

 

It's important to work closely with a tax professional or financial advisor who is familiar with the tax implications of divorce. They can provide guidance based on your specific situation, help you navigate the complexities of tax law, and ensure that you make informed decisions that align with your financial goals. Additionally, tax laws can change, so it's advisable to stay updated on any relevant updates or modifications.

 

Do I have to show my ex my tax return?

In general, you are not obligated to show your ex-spouse your tax return. Once you are divorced, your financial affairs, including your tax returns, are generally considered private. However, there are some considerations to keep in mind:

1. Dependent Claims

• If you have dependents, such as children, and there are agreements or court orders specifying who can claim them on tax returns, you may be required to share certain information to comply with those agreements. For example, if the divorce decree states that the noncustodial parent can claim a child as a dependent, the custodial parent may need to provide certain details to facilitate that claim.

 

2. Financial Disclosures

• During divorce proceedings, both spouses often need to provide financial information as part of the discovery process. This may include sharing tax returns, bank statements, and other financial documents to ensure an equitable division of assets.

 

3. Child Support or Alimony Calculations

• If child support or alimony is determined based on income levels, the financial information from tax returns may be relevant. In some cases, sharing certain details may be necessary for calculating support payments.

 

4. Legal Agreements

• If there are specific legal agreements or court orders in place that require the sharing of financial information, you may need to comply with those agreements.

 

It's important to consult with your divorce attorney to understand any legal obligations regarding the sharing of financial information. Additionally, if there are concerns about privacy or confidentiality, you may consider discussing these matters with your attorney to determine the best course of action.

 

While there may be situations where sharing tax information is necessary, especially in the context of child-related matters or legal agreements, the general principle is that tax returns are private documents, and you are not required to share them with your ex-spouse.

 

Can both divorced parents claim head of household?

No, both divorced parents cannot claim the Head of Household filing status for the same tax year. The Head of Household status is typically reserved for a taxpayer who is considered unmarried, has a qualifying dependent (such as a child), and pays more than half the cost of maintaining a home for themselves and the dependent.

 

If parents are divorced, only one of them can qualify for the Head of Household status in a given tax year. Generally, the custodial parent, the one with whom the child lived for the greater part of the year, is eligible for this filing status. The custodial parent may also be entitled to claim certain tax benefits associated with dependents, such as the Child Tax Credit.

 

It's important to note that specific rules and eligibility criteria can vary, and tax laws may change. If there is a legal agreement or court order specifying which parent can claim the child as a dependent or file as Head of Household, that agreement will usually be honored for tax purposes.

 

In situations where parents share custody evenly, and neither can meet the criteria for Head of Household, both parents would typically file as Single. If there is any uncertainty or disagreement, it's advisable to seek guidance from a tax professional or attorney familiar with family law and tax regulations to ensure compliance with the rules and to avoid potential conflicts.

 

Is my spouse entitled to half my tax return if we are divorced?

The division of tax refunds in a divorce depends on various factors, including the laws in your jurisdiction, the specifics of your divorce agreement, and whether you and your spouse have any legal agreements or court orders in place.

 

In many cases, tax refunds are considered marital property and may be subject to division as part of the divorce settlement. The division of assets, including tax refunds, is often outlined in the divorce decree or settlement agreement. The terms may vary based on factors such as:

1. Community Property or Equitable Distribution

• Some states in the United States follow community property laws, where assets acquired during the marriage are generally considered community property and are divided equally. Other states follow equitable distribution, where assets are divided fairly but not necessarily equally.

 

2. Spousal Support (Alimony) and Child Support

• If spousal support (alimony) or child support is part of the divorce settlement, the allocation of a tax refund may be influenced by these support arrangements.

 

3. Agreements or Court Orders

• Legal agreements or court orders may specify how tax refunds are to be handled. For example, the divorce decree might outline whether the refund is to be divided equally, allocated based on income, or awarded to a specific party.

 

4. Financial Contributions During Marriage

• The financial contributions of each spouse during the marriage may also be considered when determining how assets, including tax refunds, are divided.

 

It's essential to review your specific divorce agreement and, if necessary, consult with your divorce attorney or a legal professional to understand the terms and conditions related to the division of assets, including tax refunds. If there is uncertainty or disagreement, seeking legal advice can help ensure that the division is fair and compliant with applicable laws. Keep in mind that laws and regulations may vary, so it's important to consider the specific rules in your jurisdiction.

 

Can I deduct legal expenses from filing a divorce?

You cannot deduct legal expenses from filing a divorce. You cannot deduct legal expenses to claim your share of the marital property or alimony payments either. If you paid legal fees for your former spouse even though it was not part of the divorce decree, then you will owe a gift tax. The Internal Revenue Service (IRS) considers these expenses to be personal in nature and, therefore, non-deductible.

 

Can I deduct my share of the children's shared expenses that I paid to my ex?

Children's shared expenses, such as piano lessons are not tax-deductible. The only shared expense that can be deducted is medical payments. Depending on the share of the medical expense, co-parents can claim a deduction.  The Internal Revenue Service (IRS) does not typically allow deductions for child support or for shared expenses related to children in a divorce or separation situation. Child support payments are generally not deductible by the paying parent, and they are not considered taxable income for the receiving parent.

 

If you're making payments directly for shared expenses related to your children (e.g., education, medical expenses), these payments are generally not deductible as well. However, there are specific tax credits and deductions related to children that may apply, such as the Child Tax Credit, the Child and Dependent Care Credit, and certain educational credits.

 

It's crucial to differentiate between child support, which is not deductible, and other potential tax benefits that may be available. Tax laws are subject to change, and individual circumstances can vary, so it's advisable to consult with a tax professional or accountant who can provide guidance based on the latest tax regulations and your specific situation. They can help you identify any available tax credits or deductions that may apply to your circumstances.

 

Do I need to update my W-4 after divorce?

Since you and your former spouse are no longer together, you and your spouse need to fill out a new W-4 to declare the dependent count. For example, while married, a high-income earning spouse might claim children as dependents to get more deductions. However, after the divorce, the lower-income spouse is the custodial parent thus making them qualified for those deductions. Both co-parents will need to fill out a fresh W-4 with the updated information.

 

Can file my taxes online after divorce?

While during and right after divorce, you may need to file taxes through a CPA or a financial advisor. Most of the online tax filing websites may be sufficient after that unless you have very complex tax scenarios. Some sites even allow you to file taxes for free.

 

Do I need to change my name with the IRS after divorce?

Yes, if your name has changed due to a divorce, you should update your name with the IRS (Internal Revenue Service). Ensuring that your name is consistent across all your tax-related documents is important for accurate processing of your tax returns and other correspondence with the IRS.

Here are the steps to update your name with the IRS:

1. Update Social Security Records

• Before updating your name with the IRS, you should first update your name with the Social Security Administration (SSA). You can do this by filing Form SS-5, Application for a Social Security Card. Once your name change is processed by the SSA, they will notify the IRS.

 

2. Use Your Legal Name on Tax Documents

• When filing your tax returns and related documents, make sure to use your legal name as it appears on your Social Security card. This consistency helps match your tax records with those in the Social Security system.

 

3. Notify the IRS

• If you've already filed your tax return using your previous name, you do not need to file an amended return solely for the name change. However, for future filings, use your updated name. If you are in the process of filing your return when your name changes, use your new name.

 

4. Include Documentation if Requested

• In some cases, the IRS may request documentation to support the name change. This could include a copy of your marriage certificate or divorce decree, depending on the circumstances.

 

5. Update Other Records

• In addition to the IRS and Social Security Administration, you may need to update your name with other entities, such as your employer, financial institutions, and the Department of Motor Vehicles.

 

It's crucial to keep your personal information current with the relevant government agencies to avoid any delays or complications in processing documents and to ensure that you receive any correspondence accurately. If you have specific questions or concerns about your situation, it's advisable to consult with a tax professional or legal advisor for personalized guidance.

 

Do the children of divorced parents get less tax return if one of the parents claim them as a dependent?

The impact on your child's tax situation depends on various factors, including the specific tax benefits claimed by their divorced parents, their income, and their eligibility for certain tax credits. Here are some key points to consider:

1. Dependent Status

• If their parents are divorced, only one of them can claim them as a dependent on their tax return in a given tax year. Generally, the custodial parent, the one with whom they lived for the greater part of the year, is eligible to claim them as a dependent. However, the noncustodial parent may be able to claim them if they have a release of exemption or a specific agreement in place.

 

2. Tax Credits

• The parent claiming them as a dependent may be eligible for certain tax credits, such as the Child Tax Credit and the Earned Income Tax Credit. These credits can reduce the amount of taxes owed and, in some cases, result in a tax refund.

 

3. Child's Income

• If they have earned income, their eligibility for certain tax credits or deductions may be affected. For example, the American Opportunity Credit for education expenses or certain education-related deductions may be claimed based on their expenses and the tax return of the person claiming them as a dependent.

 

4. Communication and Agreements

• It's essential for divorced parents to communicate and agree on the appropriate allocation of tax benefits, especially if there are specific agreements or court orders in place.

 

5. Financial Support

• The parent claiming them as a dependent should generally provide more than half of their financial support during the tax year.

 

It's important to note that tax laws can be complex and are subject to change. If children have concerns about how their parents are claiming them on their tax returns and how it might impact their tax situation, they should consider seeking advice from a tax professional. They can provide guidance based on your specific circumstances and help ensure that their tax situation is handled correctly.

 

 

 

Related:

Tips For Financial Success After Divorce

Divorce Finance

Should You Split The Christmas Bonus After Divorce

 

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.