On behalf of Stange Law Firm, PC posted in divorce on Friday, March 10, 2017.
In last week’s post, this blog took a look at child support and tax matters. However, if you have split up with your spouse, divorce could affect your taxes in other ways. For example, if you are required to pay alimony or receive spousal support, you should familiarize yourself with the impact that alimony will have on your tax return. In Jackson County, Missouri, daily life after a divorce can be challenging for various reasons, but you may have an easier time if you develop a solid understanding of your responsibilities.
The Internal Revenue Service states that you are required to include spousal support payments that you have received as part of your income. Furthermore, those who pay alimony are able to deduct spousal support payments that they have made. Nevertheless, some payments are not recognized as alimony by the IRS if certain requirements are not satisfied, such as payments which are seen as a property settlement or payments made via an unacceptable payment method. In some cases, payments cannot be deducted or counted as taxable income if both parties lived in the same house at the time payments were made.
Whether you receive alimony or are required to pay spousal support, it is essential to be aware of your responsibilities. Additionally, if you are thinking about divorce, you should try to plan ahead and prepare for the different ways that splitting up with your spouse could affect you.
Also, you must understand that this write-up is not a replacement for legal guidance.