Revocation of Release of Claim to Exemption for Child by Custodial Parent
Revocation of Release of Claim to Exemption for Child by Custodial Parent (Click to download)
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Divorce & Taxes: What to Expect
What implications do alimony, child custody, child support, and property division have on your taxes? Lee Rosen, retired divorce attorney and founder of Rosen Law Firm, tells you what to expect. Welcome to The Tax Center at North Carolina Divorce. I’m Lee Rosen. We’ve compiled here in this center all of the information that we […]
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26 U.S. Code §73- Services of Child
(a) Treatment of amounts received Amounts received in respect of the services of a child shall be included in his gross income and not in the gross income of the parent, even though such amounts are not received by the child. (b) Treatment of expenditures All expenditures by the parent or the child attributable to […]
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26 US Code §71: Alimony and Separate Maintenance Payments
(a) General rule Gross income includes amounts received as alimony or separate maintenance payments. (b) Alimony or separate maintenance payments defined For purposes of this section— (1) In general The term “alimony or separate maintenance payment” means any payment in cash if— (A) such payment is received by (or on behalf of) a spouse under […]
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Will the IRS Tax My Alimony?
Is alimony taxable? No. For divorces entered into before 2019, the spouse who received alimony payments would have to include alimony as earned income when filing taxes while the spouse who furnished the alimony payments could claim a deduction for the alimony payments. However, going forward from January 1st, 2019, alimony will neither be taxable […]
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Alimony Recapture: What You Need to Know
If alimony is front-loaded, meaning that the payments are substantially larger in the first year or two, the alimony recapture rule could be triggered. The rule provides that if the amount paid in the third year plus $15,000 is less than the amount paid in the second year, or when the payments in the second […]
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Is Child Support Taxable?
No. child support payments are not taxable or deductible. The IRS has mandated that child support payments are never deductible and never taxable.
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Can My Former Spouse and I Share the Dependency Exemption?
It is not permissible to share or split the dependency exemption; only one parent can claim the child as a dependent on any given year. However, there are other ways that the parents can essentially share the exemption. One way both parents can benefit from the exemption is to alternate who claims the child each […]
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Divorce Finances: Taxes, QDROs, & Retirement Divisions
Generally speaking, upsetting a retirement account before it is permissible to do so can result in a major tax penalty. However, when couples divorce dividing retirement accounts is inevitable. If the retirement account is a qualified employ plan, such as a 401K or pension that receives contributions from the employer, a tax free division can […]
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Will I Pay Taxes on Assets Received from my Spouse Post-Separation?
No. Spouses are permitted to transfer property, incident to divorce, without recognizing and reporting a loss or gain. Regardless of what this transfer is called (gift, sale, exchange, etc.) the rule will protect the spouses from incurring a tax penalty by transferring property. Generally a provision will be included in the legal document discussing the […]
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