Tax Tips For Divorced Couples - TurboTax Tax Tip Video

https://turbotax.intuit.com Tax Tips for Divorced Couples

This video is accurate for your 2017 and 2018 taxes. However, alimony payments will no longer be deductible and alimony income will no longer be taxable for separation agreements finalized after 2018.

No one gets married preparing to get divorced, so many newly divorced people are unprepared for the tax rules that they may now be subject to. Watch this TurboTax tax tip video for a few things to think about if you've gotten divorced.

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Video transcript:

Hi, I'm Richard from TurboTax with tax tips for divorced couples.

No one gets married preparing to get divorced, so many newly divorced people are unprepared for the tax rules that they may now be subject to. Here are a few things to think about if you've gotten divorced.

First, if you have children, only one parent may claim an exemption for them.

Generally, the child must live with you during the year to claim them as a dependent, but a non-custodial parent can still take the exemption. They will need the custodial parent's permission and that parent must sign IRS Form 8332.

Second, child support is not tax deductible for the parent making the payments. If you are receiving child support payments, note that they aren’t considered taxable income. They also don’t count towards the Earned Income Tax Credit.

Three, you may now also have alimony payments. If you are receiving alimony payments, you will need to declare them as income on your tax return.

On the flip side, if you're the one making the alimony payments, you may claim them as a tax deduction.

Unfortunately, most costs of the divorce process are not tax deductible, however attorney fees that relate to tax advice or obtaining alimony can be an itemized deduction.

For more information this and other tax topics, visit TurboTax.com.