Page 41 - Book11E

CHAPTER 4
Tax Information You’ll Need to Know
If you are divorced, there are tax implications that you need to be aware of. Some of these are in your favor, and some you will need to keep in mind during the year.
Alimony is tax deductible . It is also taxable. If you are paying alimony, you can deduct it from your adjusted gross income. If you receive ali- mony, you will have to declare it as income, so don’t forget to include that amount as you prepare for filing your taxes.
Child support is not taxable . It is also not tax deductible. If you receive child support, you will not have to declare it as income. If you are paying child support, you will not be able to deduct it from your adjusted gross income.
Claiming dependents can cause problems in an ex-spouse relation- ship unless you can come to an agreement before the first tax filing as a single parent . If you have joint custody and you want to take the deduction for the children, you will have to have this worked out with the other parent. The IRS requires that the parent who is claiming the deduction but who the child does not live with submit a form signed by the custodial parent to say that there is agreement on who will claim the deduction.
Head of Household . As a single parent with whom the child resides, you are now the “head of household.” This gives you a better tax advantage.
A father carries pictures where his money used to be.
—Anonymous
33