Courtesy of Guest Blogger, Stanley J. Bushner, Shareholder
Buckno Lisicky & Company CPA's
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There are various tax issues that I am usually confronted with when dealing with a divorce. The tax issues to consider are the filing status, dependents, alimony vs. child support, property settlements, standard vs. itemized deductions and qualified retirement plans including IRA’s.
Couples that are separated may file married filing separate, married filing joint or head of household. Head of household requires you live apart from your spouse for the last six months of the year and pay over half the cost of maintaining a residence for a child who is eligible to be your dependent. Your marital status for the year is determined by your marital status on the last day of the year.