For individuals going through a divorce, or for those just contemplating a divorce, one of the big questions often posed by clients to divorce attorneys, as well as by prospective clients, is “should I file a joint return this year with my spouse”?
The recent sweeping tax law, signed by President Donald Trump, known as the Tax Cuts and Jobs Act (TCJA), among other things disposed of the 75-year-old tax deduction for the payment of alimony (also known as spousal support). The deductibility of alimony paid by a spouse meant the recipient of alimony was to pay taxes on the receipt of this money. … Continued
The tax reform bill currently making its way through the U.S Congress could have potentially seismic effects on California family law. The proposed legislation, which repeals itemized tax deductions such as medical expenses, state income taxes, attorney’s fees, and unreimbursed business expenses, calls for notable changes to the tax structure of spousal support. The current proposed changes to the tax … Continued
If divorcing your spouse is not difficult enough, those who are not legally divorced by December 31 must begin thinking at this time of year about tax planning as “married” individuals. The issue of tax filing becomes an entirely separate negotiation between lawyers and their clients. While individual tax returns are not due until April 15, tis the season now for … Continued
Tax planning and divorce sound like two unlikely partners, but they are not. This week’s blog post is written by Selwyn Gerber, CPA, who explains why tax planning is critical during and after a divorce.
In the words of The Beatles, “ ‘Cause I’m the Taxman…,” and because it’s almost the filing deadline (April 16 this year), the Taxman is here. Marital and family status, of course, has a big impact on your taxes. So, here are some important rules everyone needs to know if they are going through a divorce, are already divorced or … Continued
When married people sign a joint tax return, they agree to be jointly and individually responsible for the tax and any interest or penalty due on the joint filing, even if they later divorce. Some spouses simply sign the return without understanding or caring about its content while others sign the return without questions because they fear abuse from their … Continued
It’s not easy to find a benefit in divorce, but there are tax advantages which are beneficial, sometimes only to one spouse, but often to both spouses. There may be other tax benefits or consequences other than those identified below, but these are some of the basics. With that being said both spouses should consult with their own individual accountant … Continued
Tax season is over, so it is now time for all child and spousal support orders to be reviewed. In every case in which a Judgment has been entered and support ordered, each party has a right to request financial information from their former spouse. This is often done as a precursor to a modification of support proceeding. So, now … Continued