Tips for preparing your taxes when getting divorced

On Behalf of | May 1, 2023 | Divorce |

Preparing your taxes while getting divorced in Alaska can be tricky. Keeping some points in mind will help ensure you file them correctly.

Know your marital status

Your divorce must be finalized on or before December 31 for you to claim that you are single on your taxes. Since that often means you will pay a higher tax rate, consider waiting until the start of the following year to make it official.

Inventory assets and liabilities

You must know whose name is on what accounts when you file your taxes. Therefore, it is best to gather official documents on each of them. Keep these documents as evidence in case you get audited.

Sell your primary residence before finalizing the divorce

If you have lived in your primary residence for at least two of the last five years, consider selling it before your divorce becomes final. It can make a massive difference in your capital gains taxes.

Decide who claims the kids

Generally, if your children live with you for over half the year and you pay at least half their support, you can claim them as a deduction on your tax return. One parent can only claim children as dependents, so consider talking to your ex-spouse about it.

Consider taxes when dividing assets

Some types of assets are taxed at a higher rate than others. Therefore, consider how much taxes you must pay on axes when dividing them.

Use your legal name

If you plan to return to using your maiden name or removing the hyphen from your name after getting divorced, resist the temptation to file your taxes that way until you legally change your name. Notify the Social Security Administration first.

Know the alimony tax law

Congress has repeatedly changed if you can subtract alimony or maintenance payments from your taxes and if the person receiving the payments must claim it as income. Therefore, ensure you know the current tax law.

Following these tips can help you file your taxes correctly. If you have any doubts, consider filing for an extension.

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