Divorced? PROTECT YOUR TAXES

Divorce can be harsh on both parties involved. It hurts and can make one feel lonely and vulnerable. Whereas, most areas are sorted out. One of the least spoken subjects are how divorces can affect ones taxes. It can delay refunds, cost more time to filed, and cause unnecessary stress that doesn't need to be added to one's busy schedule. First off, this can also include those who file "Married File Separate" and have "separate maintenance decrees" and/or "written separation agreements".

For Starters it can add income.

In other words, if one spouse makes payments to another it can be deducted on their tax return and the one receiving must claim it as "extra income".

Starting January 1, 2019

Alimony or separate maintenance given through a divorce or separation agreement is no longer a deductible and isn't "extra income" for the one who receives it.

Before or on December 31, 2018 The new law applies if terms on alimony or separate maintenance payments are modified in any way

Agreements after December 31, 2018

If executed on or before will follow previous rules. If modified after that date then the agreement still follows the previous rules unless as they don't apply to the other terms described above.

You also may want to;

1. Report to the Social Security Administration

2. Report to IRS any address changes

3. Report to any insurance companies about the change

4. Make sure to have a savings in case you owe money due to income changes.

Divorce is hard as it is. Don't allow it to affect you more than it has to.

More Information found in IRS website: Publication 504, Divorced or Separated Individuals

https://www.irs.gov/forms-pubs/about-publication-504

****Disclaimer: All information is found in www.irs.gov*****

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