The newly enacted Tax Cuts and Jobs Act (TCJA) impacts tax filings. When you add divorce and alimony to the mix, it can become an even more complicated process.
Your marital status at the end of the year will determine how you file your tax return. If your divorce has been finalized, you will file separately from your spouse and can file as Single or Head of Household.
If you are in the midst of your divorce, but it has not been completely finalized you can only file as Married Filing Jointly or Married Filing Separately.
It is important to understand that in community property states such as Nevada, in order to correctly file Married Filing Separately, both spouses are required to report his one half of his income and one half of his spouses’ income.
Just reporting your own income is not correct. Once the divorce is finalized, both parties are considered not married for the entire year.
Prior to the new tax law, alimony payments were deductible and needed to be reported on the return. With the new tax law, alimony payments, for both the payer and payee are different.
For all divorces not finalized prior to the end of 2018, your tax treatment will be different.
Read more about how divorce affects income tax filing: http://petronilaw.com/how-divorce-affects-income-tax-filing-2/
Gloria Petroni of Petroni Law Group has more than 30 years of experience in divorce law, estate planning, probate, business and real estate matters.