Kylie Bearse and Jason DeRusha talk with Jonathan Fogel, of Seiler Schindel, about the things you should know about filing your taxes when you’re divorced or separated. WCCO Mid-Morning – March 28, 2016…(read more)

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Filing taxes can be a stressful and confusing task, especially for individuals who have recently gone through a divorce or separation. The end of a marriage or partnership can bring about a slew of changes in personal finances, which can make the process of filing taxes even more complicated. Here are some important things to keep in mind when filing taxes after a divorce or separation.

One of the first considerations for individuals who have recently divorced or separated is their filing status. The IRS considers a person’s marital status on the last day of the year to determine how they should file their taxes. If the divorce or separation was finalized before December 31st, then the individual should file as single or head of household. If the divorce was not yet finalized, the individual may still be able to file as married filing jointly or married filing separately.

It’s essential to update any personal information with the IRS, including name changes and address changes. This can be done by filling out Form 8822, Change of Address, or by including the updated information on the tax return. It’s important to ensure that all personal information is accurate to avoid any delays in processing the tax return.

Another crucial aspect to consider when filing taxes after a divorce or separation is alimony and child support. Alimony payments can be deducted by the payer and must be reported as income by the recipient. On the other hand, child support is not deductible for the payer and is not considered taxable income for the recipient. It’s important to keep accurate records of all alimony and child support payments to ensure that the correct amounts are reported on the tax return.

Asset division can also have tax implications for individuals who are newly divorced or separated. For example, if real estate or investments were transferred as part of the divorce settlement, it’s important to understand the tax consequences of these transfers. Consulting with a tax professional or legal advisor can help individuals understand the tax implications of asset division and ensure that they are in compliance with IRS regulations.

It’s also important to review any tax deductions or credits that may be available to individuals who are recently divorced or separated. For example, individuals who have sole custody of a child may be eligible for the child tax credit or the earned income tax credit. Understanding the tax benefits that may be available can help individuals maximize their tax savings.

Finally, individuals who have recently divorced or separated should consider any changes to their retirement accounts or estate planning. These changes can have tax implications, and it’s essential to review and update beneficiary designations on retirement accounts and life insurance policies to reflect the new circumstances.

Filing taxes after a divorce or separation can be a complex process, but with careful consideration and attention to detail, individuals can navigate the process successfully. Seeking the guidance of a tax professional or legal advisor can help ensure that all tax implications are addressed and that the individual is in compliance with IRS regulations. By staying organized and informed, individuals can tackle the task of filing taxes with confidence, even in the midst of significant life changes.