Tax season and divorce: Tips for Illinois residents

On behalf of Stange Law Firm, PC posted in Child Custody on Wednesday, March 27, 2013.

With tax season in full swing, those Illinois residents who are either newly divorced or are going through a divorce right now may be wondering just how to file. Should they file separately or jointly? What about if their divorce went through on Jan. 2, 2013?

The first question that needs to be answered is whether a person is still married or single. This will depend on if the divorce is pending or if it has gone through. Basically, if the divorce went through before the last day of 2012, a person is single. If the divorce did not go through until 2013, for tax purposes, the filer is married.

If for tax purposes the filer is still married, the next question will be whether to file jointly or separately. Typically, filing jointly tends to equate to lower taxes. However, if this seems like it is going to be more of a hassle, separately may be best.

When filing taxes, if children are involved, a custodial parent may also be able to claim the child for the dependent exemption. Keep in mind though, in order to do this the parent needs to be legally separated or divorced on the last day of 2012. The divorce decree also needs to name the custodial parent.

Also, keep in mind that there are some cases where the custodial parent will want the non-custodial parent to take the dependent exemption. This can be done by the non-custodial parent filing out IRS Form 8332.

Again, if children are involved, child support may come to mind when filing taxes. Keep in mind that those who receive and those who pay child support cannot deduct those payments. But, the good news is that for those receiving the payments, child support is not taxed as income.

Of course, these are just some of the more basic tax concerns that tend to crop up during a divorce of within the first year of a divorce. Other concerns may arise depending on a couple’s individual circumstances.

Source: Forbes, “Taxes And Divorce: 6 Tips For Women,” Kerry Hannon, March 7, 2013

Related Posts