{"id":135,"date":"2023-08-24T13:31:11","date_gmt":"2023-08-24T13:31:11","guid":{"rendered":"https:\/\/blog.suryapadhiea.com\/blog\/?p=135"},"modified":"2023-08-24T13:31:11","modified_gmt":"2023-08-24T13:31:11","slug":"tax-considerations-for-people-who-are-separating-or-divorcing","status":"publish","type":"post","link":"https:\/\/blog.suryapadhiea.com\/blog\/irs-tips\/tax-considerations-for-people-who-are-separating-or-divorcing\/","title":{"rendered":"Tax considerations for people who are separating or divorcing."},"content":{"rendered":"\n<p>Issue Number:\u00a0\u00a0Tax Tip 2023-97<\/p>\n\n\n\n<p><strong>Tax considerations for people who are separating or divorcing<\/strong><\/p>\n\n\n\n<p>When couples separate or divorce, the change in their relationship status affects their tax situation. The IRS considers a couple married for tax filing purposes until they get a final decree of divorce or separate maintenance.<\/p>\n\n\n\n<p><strong>Update tax withholding<\/strong><strong><br><\/strong>When a taxpayer divorces or separates, they usually need to update their proper tax withholding by filing with their employer a new&nbsp;<a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjcsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3Lmlycy5nb3YvZm9ybXMtcHVicy9hYm91dC1mb3JtLXctNCIsImJ1bGxldGluX2lkIjoiMjAyMzA3MzEuODA0MzM2NjEifQ.Wl6yVupfhyW1KXnQ2l_3W1YNRFNZ-fFPhpF6oU4TL18\/s\/1822607036\/br\/223459890693-l\">Form W-4, Employee&#8217;s Withholding Certificate<\/a>. If they receive alimony, they may have to make estimated tax payments. Taxpayers can figure out if they\u2019re withholding the correct amount with the&nbsp;<a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjgsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3Lmlycy5nb3YvaW5kaXZpZHVhbHMvdGF4LXdpdGhob2xkaW5nLWVzdGltYXRvciIsImJ1bGxldGluX2lkIjoiMjAyMzA3MzEuODA0MzM2NjEifQ.gaysfo88cU15D1S5dLlAooqDJwXGyUsTDq2lxrFAFxg\/s\/1822607036\/br\/223459890693-l\">Tax Withholding Estimator<\/a> on IRS.gov.<\/p>\n\n\n\n<p><strong>Tax treatment of alimony and separate maintenance<\/strong><\/p>\n\n\n\n<ul>\n<li>Amounts paid to a spouse or a former spouse under a divorce decree, a separate maintenance decree or a written separation agreement may be alimony or separate maintenance for federal tax purposes.<\/li>\n\n\n\n<li>Certain alimony or separate maintenance payments are deductible by the payer spouse, and the recipient spouse must include it in income.<\/li>\n<\/ul>\n\n\n\n<p><strong>Rules related to dependent children and support<\/strong><strong><br><\/strong>Generally, the parent with custody of a child can claim that child on their tax return. If parents split custody fifty-fifty and aren&#8217;t filing a joint return, they&#8217;ll have to decide which parent claims the child. If the parents can\u2019t agree, taxpayers should refer to the tie-breaker rules in <a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMjksInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3Lmlycy5nb3YvZm9ybXMtcHVicy9hYm91dC1wdWJsaWNhdGlvbi01MDQiLCJidWxsZXRpbl9pZCI6IjIwMjMwNzMxLjgwNDMzNjYxIn0.hMKRrivmYDBTyzOW-s5N4L81s3Pmb5ASCLhqrYFF6_0\/s\/1822607036\/br\/223459890693-l\">Publication 504, Divorced or Separated Individuals<\/a>. Child support payments aren&#8217;t deductible by the payer and aren&#8217;t taxable to the payee.<\/p>\n\n\n\n<p>Not all payments under a divorce or separation instrument \u2013 including a divorce decree, a separate maintenance decree or a written separation agreement \u2013 are alimony or separate maintenance. Alimony and separate maintenance doesn\u2019t include:<\/p>\n\n\n\n<ul>\n<li>Child support<\/li>\n\n\n\n<li>Noncash property settlements \u2013 whether in a lump-sum or installments<\/li>\n\n\n\n<li>Payments that are your spouse&#8217;s part of community property income<\/li>\n\n\n\n<li>Payments to keep up the payer&#8217;s property<\/li>\n\n\n\n<li>Use of the payer&#8217;s property<\/li>\n\n\n\n<li>Voluntary payments<\/li>\n<\/ul>\n\n\n\n<p>Child support is never deductible and isn&#8217;t considered income. Additionally, if a divorce or separation instrument provides for alimony <strong>and<\/strong> child support and the payer spouse pays less than the total required, the payments apply to child support first. Only the remaining amount is considered alimony.<\/p>\n\n\n\n<p><strong>Report property transfers, if needed<\/strong><strong><br><\/strong>Usually, if a taxpayer transfers property to their spouse or former spouse because of a divorce, there\u2019s no recognized gain or loss on the transfer. People may have to report the transaction on a gift tax return.<\/p>\n\n\n\n<p><strong>More information:<br><\/strong><a href=\"https:\/\/lnks.gd\/l\/eyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMzAsInVyaSI6ImJwMjpjbGljayIsInVybCI6Imh0dHBzOi8vd3d3Lmlycy5nb3YvdGF4dG9waWNzL3RjNDUyIiwiYnVsbGV0aW5faWQiOiIyMDIzMDczMS44MDQzMzY2MSJ9.C4kGVIeLK7wGS7xjWwImSj3SM6Qqr4_63m1UwDyJKDk\/s\/1822607036\/br\/223459890693-l\">Topic No. 452 Alimony and Separate Maintenance<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"http:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2023\/05\/Corporate-LinkedIn-Banner.jpg\" alt=\"Sure Financial Service Offering\" class=\"wp-image-34\" width=\"837\" height=\"285\" srcset=\"https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2023\/05\/Corporate-LinkedIn-Banner.jpg 646w, https:\/\/blog.suryapadhiea.com\/blog\/wp-content\/uploads\/2023\/05\/Corporate-LinkedIn-Banner-300x102.jpg 300w\" sizes=\"(max-width: 837px) 100vw, 837px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Issue Number:\u00a0\u00a0Tax Tip 2023-97 Tax considerations for people who are separating or divorcing When couples separate or divorce, the change in their relationship status affects their tax situation. The IRS considers a couple married for tax filing purposes until they get a final decree of divorce or separate maintenance. Update tax withholdingWhen a taxpayer divorces [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14,2,9,7],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/135"}],"collection":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/comments?post=135"}],"version-history":[{"count":1,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/135\/revisions"}],"predecessor-version":[{"id":136,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/135\/revisions\/136"}],"wp:attachment":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/media?parent=135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/categories?post=135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/tags?post=135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}