Divorces can impact all manner of areas of a person’s life. This includes an individual’s tax situation. For one, a divorce impacts a person’s tax filing status. And this is just the tip of the iceberg of the tax implications of divorces. Examples of things a divorce and what happened in the divorce can affect for a person tax-wise include:
- What income streams they have. In the wake of a divorce, a person can undergo a big shift in their income sources. Some post-divorce income sources, such as alimony, have special tax rules connected to them.
- Whether they can claim their child as a dependent.
- What sorts of mortgage and real estate tax deductions they could claim.
- What tax issues are present when it comes to their investments.
Understanding the specific impacts their divorce has had when it come to taxes can be very important for a person in the wake of getting divorced. Failing to take such impacts into account or making false assumptions regarding such impacts could lead to tax mistakes that could result in a person facing impactful actions from the Internal Revenue Service.
Disputes with the IRS connected to divorce-related tax impacts like the ones mentioned above are not the only complicated IRS matters a person could find themselves navigating after a divorce. For example, some divorced individuals may end up pursuing innocent spouse relief from the IRS if they find that their ex-spouse engaged in tax-related misconduct in the past. When any complex situations with the IRS come up following a divorce, an individual may want to promptly consult with a skilled tax lawyer on the matter. Such attorneys can help individuals navigate dealings with the IRS and understand what options they have during the course of such dealings.
Source: WTOP, “5 things women should know about taxes after a divorce,” Dawn Doebler, March 22, 2017