{"id":25935,"date":"2023-07-31T08:00:00","date_gmt":"2023-07-31T13:00:00","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=25935"},"modified":"2023-07-31T10:41:21","modified_gmt":"2023-07-31T15:41:21","slug":"tax-considerations-for-people-who-are-separating-or-divorcing","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-considerations-for-people-who-are-separating-or-divorcing\/","title":{"rendered":"Tax considerations for separating or divorcing"},"content":{"rendered":"

When people go through a legal separation or divorce, the change in their relationship status also affects their tax situation. The IRS considers a couple married for filing purposes until they get a final decree of divorce or separate maintenance. Here is some specific guidance you can read and share with your clients.<\/p>\n

Update withholding<\/h2>\n

When someone becomes divorced or separated, they usually need to file a new Form W-4<\/a> with their employer to claim the proper withholding. If they receive alimony, they may have to make estimated tax payments. The Tax Withholding Estimator<\/a> tool on IRS.gov can help people figure out if they\u2019re withholding the correct amount.<\/p>\n

Understand the tax treatment of alimony and separate maintenance<\/h2>\n

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 payments for federal tax purposes. Certain alimony or separate maintenance payments are deductible by the payer spouse, and the recipient spouse must include it in income.<\/p>\n

However, individuals can’t deduct alimony or separate maintenance payments made under a divorce or separation agreement executed after 2018 or executed before 2019, but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. Alimony and separate maintenance payments received under such an agreement are not included in the income the recipient spouse.<\/p>\n

Determine who will claim a dependent child if filing separate returns<\/h2>\n

Generally, the parent with custody of a child can claim that child on their tax return. If parents split custody 50-50 and aren\u2019t filing a joint return, they\u2019ll have to decide which parent gets to claim the child. There are tie-breaker rules<\/a> if the parents can\u2019t agree. Child support payments aren\u2019t deductible by the payer and aren\u2019t taxable to the payee.<\/p>\n

Not all payments under a divorce or separation instrument\u2014including a divorce decree, a separate maintenance decree or a written separation agreement\u2014are alimony or separate maintenance. Alimony and separate maintenance doesn\u2019t include:<\/span><\/p>\n