June 3, 2015

Nothing is certain but death and taxes

It’s that time of year again ladies and gentlemen– it’s tax season. With the April 15thindividual tax deadline quickly approaching we want to remind you of a few considerations.

For taxpayers recently divorced or in the middle of Family Court proceedings, for IRS purposes you will be considered “married” unless there is a signed Final Judgment of Divorce in your case.  If there has been a Final Judgment of Divorce in your case, parties should discuss which party is entitled to a dependency exemption. The parent filing for the dependency exemption should also consider the Child Tax Credit for children under the age of seventeen.

If alimony was awarded in your divorce, the amount received to the payee may be taxable as income. I.R.C. § 71. Generally, the payor spouse may deduct alimony from his income. I.R.C. § 215. For more information on deductions relating to alimony contact us or tax professional.

One tax consequence of the Supreme Court’s ruling on the Defense of Marriage Act (DOMA) is now same sex couples who were legally married before 2013 but unable to file as married filing joint can now amend their tax returns for prior years to the married filing joint status. These taxpayers may be entitled to an additional refund on from those years. Taxpayers falling into this category should contact their professional tax preparer to file an amended tax return this year.

We at Oster Law Offices are not tax professionals and this information should not be considered professional tax advice. We advise all our clients and friends to seek out a reputable tax professional in your area for further guidance.