It is that time of year again – tax season! Nothing instills fear and dread like filing tax returns except for filing tax returns pending a divorce. There are several considerations that should be reviewed with a tax professional and your family law attorney before filing your tax return.
Some income tax issues include:
- Joint or Separate filings
- Refunds due
- Amounts owed
- Back taxes owed
- Deductions
- Child Tax credits
First, you need to decide if filing a joint return or separate attorney is in your best interest. The process is generally straightforward if one or both spouses are employees that receive W2 income but becomes more complicated when one party is self-employed or works as an independent contractor. The amount of a refund or payment due, if any, will depend in part how you file so it is important to analyze your options.
Filing status and income is only one piece of the puzzle. There are additional considerations related to children including dependency exemptions. Generally, the parent that cares for a child more than half of the year (182.5 days) is considered the custodial parent and may claim the child as a dependent unless there is an alternate agreement. If you do not already have a written agreement with your spouse about claiming the exemption then you are held to the default standard and may be audited if both parties claim the same exemption in the same tax year.
No matter what action you take, in order to avoid adverse consequences it is important not to delay in filing your taxes especially if you are going through a divorce. Contact the Law Office of Shannon R. Loeser for your family law consultation today.
Shannon R. Loeser, Esq.
Certified Family Law Specialist
28202 Cabot Road, Suite 520
Laguna Niguel, CA 92677
Tel: (949) 392-5050
