Income tax may be the last thing on your mind after a divorce or separation. However,
these events can have a big impact on your taxes. Here are some key tax tips to keep
in mind if you get divorced or separated.
If you pay child support, you can't deduct it on
your tax return. If you receive child support, the amount you receive is not taxable.
If you make payments under a divorce or separate
maintenance decree or written separation agreement, you may be able to deduct them as
alimony. This applies only if the payments qualify as alimony for federal tax
purposes. If the decree or agreement does not require the payments, they do not
qualify as alimony. If you get payments that qualify as alimony, they are taxable in
the year you receive them. You may need to increase the tax you pay during the year
to avoid a penalty by making estimated tax payments or increasing taxes withheld from
If you get a final decree of divorce or separate
maintenance by the end of your tax year, you can't deduct contributions you make to
your former spouse's traditional IRA. You may be able to deduct contributions you
make to your own traditional IRA.
If you change your name after your divorce, notify
the Social Security Administration (SSA) of the change. File Form SS-5, "Application
for a Social Security Card." You can get the form at www.SSA.gov or call
(800) 772-1213 to order it. The name on your tax return must match the SSA records. A
name mismatch can delay your refund or cause other correspondence from the IRS.
This publication is distributed with the understanding that the author, publisher and
distributor are not rendering legal, accounting or other professional advice or
opinions on specific facts or matters, and, accordingly, assume no liability
whatsoever in connection with its use. The information contained in this newsletter
was not intended or written to be used and cannot be used for the purpose of (1)
avoiding tax-related penalties prescribed by the Internal Revenue Code or (2)
promoting or marketing any tax-related matter addressed herein. © 2015