How Will Divorce Affect My Taxes?
If you have been divorced recently, this affects your tax filing status.
For example, filing as “married” will produce a different
outcome than filing as “unmarried.” If you have obtained any
of the following documents, you will file as unmarried for tax purposes:
- Final decree of divorce
- Decree of separate maintenance
- Judgment of legal separation
- Decree of separation
If you are unmarried, you can file as either single, head of household
or widow (whichever applies). Being divorced can also affect the tax exemptions
for which you qualify. For example, if you qualify to file as Head of
Household, your tax rate usually will be lower than it is if you claim
a filing status of single or married filing separately, and you may be
able to claim credits like the earned income credit.
Another example of divorce affecting your taxes is for individuals who
pay spousal support. If you paid alimony to your spouse, you can’t
count this as an exemption because it counts toward the gross income of
the spouse receiving the spousal support. Alimony is tax deductible by
the individual paying it, but counted as gross income for the person receiving it.
California tax code can be complex on its own, and made even more complex
when divorce is introduced. Be sure to speak with your attorney about
the extent of the implications on your taxes. It may also be advisable
to hire a tax representative to help you through the filing process, as
opposed to filing on your own or using an online program. Get in touch with the
Rancho Cucamonga divorce attorneys at Chung & Ignacio today for more information.