SOME TAX CONSIDERATIONFS FOR PEOPLE WHO ARE SEPARATING OR DIVORCING

Update withholding

When someone becomes divorced or separated, they usually need to file a new Form W-4 with their employer to claim the proper withholding. If they receive alimony, they may have to make estimated tax payments.

Understand the tax treatment of alimony and separate maintenance

Amounts paid to a spouse or a former spouse under a divorce decree, a separate maintenance decree, or a written separation agreement may be alimony or separate maintenance payments for federal tax purposes.

Determine who will claim a dependent child if filing separate returns

Generally, the parent with custody of a child can claim that child on their tax return. If parents split custody fifty-fitty and aren't filing a joint return, they'll have to decide which parent gets to claim the child. There are tie-breaker rules fi the parents can't agree. Child support payments aren't deductible by the payer and aren't taxable to the payee.

Report property transfers, if needed

Consider filing status

·       Married filing jointly.

·       Married filing separately.

·       Head of household.

·       Single.

For more information on this and other topics, please contact Kevin via any of the channels listed below: 📧kevin@kmckernan.com or 📞718-317-5007