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You may not want to get divorced on December 31st

The advancement or postponement of the date of divorce by a single day at year-end can make a big difference in the amount of your tax bill – waiting could save you thousands of dollars. If you get divorced before the end of the year, even if it’s on December 31st, then you will be […]

Tax mistakes regarding the alimony rules

Alimony must be reported as taxable income by the person receiving it. Conversely, it is deductible by the payer (child support is not tax deductible). Unfortunately, many people are unaware that they must pay taxes on the alimony and they are hit with a huge tax bill at the end of the year. Make sure […]

Make sure you negotiate the dependency deduction.

I marvel at the number of people that do not consider the tax implications of divorce. One important consideration is the dependency deduction for children.   The current tax exemption amount for each dependent child is $3,200. For someone in the 31% tax bracket, this will save him or her over $1000 in taxes. In addition […]