Pennsylvanian couples have a lot to consider during and after a divorce. In the heat of the moment, long-term changes may be forgotten. For example, after getting a divorce from your spouse, you will have changes to your tax exemptions and filing status that may affect your potential tax return.
TurboTax lists a number of things that any divorcing couple should be aware of as they file taxes following, or while in the process of, a divorce. This includes checking whether or not your alimony payments are deductible. Unlike child support, which is never deductible, alimony is usually considered a potentially deductible payment. However, there are some situations in which it may not be. For example, if alimony payments are concentrated within the first year or two after a divorce, or if alimony ends 6 months after a child’s 18th or 21st birthday, it may be considered child support instead.
Additionally, you must determine who will be claiming your children as tax exemptions. Generally speaking, the parent with primary custody of the kids will be the one who can claim them. In situations where you have joint custody, then the person who has the children for the most days during the tax year is usually the one who will be able to claim them. This is because they will be the one facing the greatest number of daily expenses related to child rearing.
These are all issues you will need to work out before filing your taxes. For this reason, it’s generally advised that you speak with an attorney quickly in order to work things out before you need to file.