Lighting The Path To Financial Security
DIVORCE & SEPARATIONS with Children: Be smart. If you are not careful and allow emotions to get in the way, the IRS could be the only winner here. At this stressful time, your tax professional is the last person on your mind, when they should be the first. YES, FIRST, even before the lawyers.
JOINT CUSTODY may seem the best solution. 50/50 right? From a tax perspective, it could create a problem. BECAUSE, you cannot divide the year into equal parts and meet IRS guidelines for dependency. Your filing status will determine a lot also. A good practitioner can advise you on amicable solutions beneficial to both parties. Then the tax agreement can be incorporated into the temporary/final separation/divorce decree. DONE! Everyone's on the same page. (This is not legal advice it is tax knowledge).
- Record keeping is the hardest thing for customers to keep up with. Ask your practitioner if they have private fax document portals for their clients. It is private, you have login access to it and at tax time (oops! did you know tax preparation peak season is Feb-15th - Mar 15?) your practitioner can have everything on hand to prepare your taxes except W-2's & 1099's. You can store wills, birth certificates, etc. and download when needed.
- Is your spouse drawing SSD income and are you working with dependent children? HEY, your child's SSI is tax-free and is not reportable to IRS as long as that child is under the age of 17 and has no other income. Call us 866-215-5243.