With tax season upon us, it's important to understand the ins and outs of the process and make sure you're filling out and submitting your Internal Revenue Service (IRS) forms correctly. Particularly for those going through a divorce, this can become confusing very easily.
A recent article from The Huffington Post focuses on some of the key divorce-related tax questions people have and suggests that while filing your taxes this year, you should consider:
Alimony deductions - According to the source, you can deduct payments to your ex that are made pursuant to a written agreement or judgment and are not child support, provided that they cease upon your former spouse's death. Since you can likely deduct these payments from your income, this is one of the reasons why it is better to pay alimony than a property settlement payment.
Claiming the dependency exemption - The custodial parent - the one who has the child for more than half the year - has the right to claim him or her as a dependent. If the parents share custody equally, then the right belongs to the parent who pays child support or has the higher income.
Your filing status - Filing a return with the status "married, filing jointly" is preferable, since there are many advantages that come along with it. It is, in many cases, financially beneficial to both parties. If you were still married as of December 31, 2012, the good news is that you can select this option. Keep in mind, however, that you would be jointly liable in the event of an audit.
If you're going through a divorce in New Hampshire, it's in your best interest to work with an experienced attorney who can help ensure that the process goes as smoothly as possible.