On behalf of Bebout, Potere, Cox & Bennion, P.C. posted in divorce on Thursday, August 10, 2017.
If you are contemplating divorce, or have found yourself in the midst of divorce-related challenges, you could have a wide variety of questions and wonder how splitting up with your spouse will affect your future. From custody to child support and property division, divorce can be stressful for people across Michigan. Moreover, it is important to be aware of other ways divorce could affect you, such as the impact it might have on your taxes.
According to the Internal Revenue Service, there are a number of ways in which splitting up with your spouse could impact your taxes. For example, if you receive spousal support, you are required to report the alimony you receive on your tax return. Moreover, spousal support payments that are made can be deducted. Child support is not taxable and cannot be deducted. However, child support could affect your taxes. For example, if you fall behind on your child support due to an inability to make payments, your tax refund may be intercepted.
There are other considerations when it comes to divorce and taxes, such as changing your name. If you don’t inform the Social Security Administration of a name change that occurred because you dropped your spouse’s last name, your tax refund could be held up. Although some people are worried about the tax implications of divorce, you can avoid problems by carefully going over your responsibilities.
Finally, it is important for you to recognize that this post does not stand in the place of legal counsel and is offered as general information.