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Helpful Tips in Preparing Your Post-Divorce Tax Return

In Separation & Divorce, Wealth by Christopher R. Hicks

When you get divorced, one of the absolute last things you want to think about is your taxes. Nevertheless, you know that you are legally required to file a tax return, and many people rely on a tax refund as additional financial cushion each year. Unfortunately, many Americans have been shocked this year by far lower tax refunds than they are accustomed to. This is due to significant changes in tax laws that have taken effect for 2018 tax returns and moving forward. If you have recently divorced or are going to finalize your divorce this year, there are big changes that you should be aware of for preparing your post-divorce tax return. Alimony Tax Implications Have Changed In the past, one of the more palatable features of paying alimony …

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The Tax Implication of Divorce

In Separation & Divorce by Elizabeth Stephenson

Divorce is complicated. Beyond the emotional toll and uncertainty that comes with it, there is the minefield of separating a couple’s property. Your finances and property have been intertwined for years. In addition, there are the issues of child support and alimony that have to be settled. Ultimately, when the all issues have been resolved and there is a divorce decree, there is one more matter to resolve: how your divorce impacts your tax return. Tax Status — Your tax status is based on your marital status at the tax-filing deadline. So if you are not yet legally divorced yet, you will still need to file a joint return as a married couple. If you are legally divorced, you should file as single or head of household. Child as a …