Tax Tips for Newly Divorced Men

Going through a divorce can be a stressful and confusing time in your life, and a time where you likely don't spend much time thinking about tax preparations. Unfortunately, your taxes only get more difficult after a divorce, but you also have special rules and deductions you can use that might help cover some of your divorce-related expenses.

Alimony

If part of your divorce settlement included an alimony agreement, you may get a deduction on your taxes. You can deduct the cost of paying legally required alimony to your former spouse. You cannot deduct the cost of voluntarily offering money to your ex-spouse, paying child support or for payments that relate to your property. In order to claim the alimony deduction, you will need to itemize your tax return and complete Form 1040.

Filing With Children

Typically, the parent with custodial guardianship over a child will claim the dependency exemption. However, if you do not have primary custody of your child, but you make more income than your spouse, you may want to claim the dependency exemption yourself. You can do this, but your spouse will need to sign a release form that you must attach to your tax return.

Deducting Tax Preparation Costs

You cannot deduct the cost of hiring a lawyer or paying legal fees during your divorce. However, you may receive a tax deduction if you seek legal advice for your tax preparation. If you hire a lawyer to advise you on tax issues, you can deduct the cost on your income taxes. If your lawyer handles both your divorce case and your taxes, you can only deduct the cost of the tax advice.

Warnings

When you and you ex-spouse begin filing separate tax returns, the IRS may compare both returns to see if the claimed deductions match up. Make sure you fill out your tax forms completely and provide accurate information. A mistake could cost you. For example, the IRS reports that failing to provide your spouse's Social Security number on an alimony claim will result in a $50 fine.

References

• CNNMoney; Recently Split? Avoid Costly Tax Mistakes; Jeanne Sahadi; March 2006
• IRS.Gov: Publication 504