Frequently Asked Questions About Filing Taxes During A Pinellas County Divorce

Tax season is a time of year people often dread. It can be particularly stressful if you are getting a divorce in Pinellas County. The last thing you want is to end up owing money. Our Seminole divorce attorney answers some of the most frequently asked questions clients often have.

What Is My Tax Filing Status When Getting A Divorce?

One of the biggest issues when filing state and federal taxes during Pinellas County divorce proceedings is determining your tax status. This can make a major difference in the amount you owe and any potential refunds you may be entitled to.

The Internal Revenue Service (IRS) advises that your status for this year’s return depends on whether you were married up through December 31st last year. The various options include:

• Married, filing jointly: If you lived with your spouse most of the year, you may want to consider filing a joint tax return one last time. This generally allows for the greatest number of deductions.
• Married, filing separately: If you and your spouse lived apart for most of the year, this may be an option. Taxes paid are on your income alone, so in some cases, it can help you avoid liability.
• Head of household: You may be entitled to file as head of household if you have children that live with you and your spouse resided in the home for less than six months.
• Single: If your divorce was finalized last year, you are considered single for tax purposes.

Will I Owe Taxes On A Marital Property Settlements

Under the Florida Statutes, equitable distribution of marital property is one of the key issues in divorce. Among factors such as the length of your marriage and your individual income and assets, potential tax implications are also something to consider when negotiating a settlement.

In general,  if you transfer property or certain assets, such as a business or other investments, either to or from your name, you may need to claim this on your tax return. However, you generally only owe taxes if you made a profit on the transfer.

Are Spousal and Child Support Taxable?

In the past, if you received spousal support payments, they had to be reported as income and were taxable, while the paying spouse was entitled to a deduction. This is no longer the case. Generally, you do not need to report this on your current tax return. The same is true with child support. While it is not considered, make sure to negotiate who is entitled to claim child care and other deductions as part of your divorce settlement and prior to filing.

Request A Consultation With Our Pinellas County Divorce Attorney

At The Reep Law Firm, we provide caring support and trusted legal guidance when going through a divorce in Pinellas County. For answers to questions about filing status during divorce and other important matters, contact our Seminole divorce attorney and request a consultation.

Sources:

irs.gov/newsroom/some-tax-considerations-for-people-who-are-separating-or-divorcing

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html