How should I file my taxes if I got divorced?

How should I file my taxes if I got divorced?

The alternative is to file as married filing separately. It’s the year when your divorce decree becomes final that you lose the option to file as married joint or married separate. In other words, your marital status as of December 31 of each year controls your filing status for that entire year.

Do I have to pay taxes on money from a divorce settlement?

Maintenance payments made by a spouse or that are attributable to a payment made by a spouse is exempt income of the receiving spouse. If a spouse receives income from an existing trust as maintenance payments instead of directly from the other spouse, tax will be payable on that income.

How do I claim spousal support on my taxes?

You can deduct the amount of alimony payments even if you don’t itemize deductions on your income tax return. Use the standard income tax return, IRS Form 1040, to claim the deduction. You can’t use the simpler Form 1040EZ or Form 1040A. You’ll need to provide your former spouse’s social security number.

Do I have to claim alimony as income?

Spousal support is usually taxable and deductible And they must pay income tax on the payments. The spouse who pays the support (the “payor”) can claim it as a deduction. (It’s like deducting contributions to Registered Retirement Savings Plans or child care expenses).

Do I report spousal support on my taxes?

The Tax Treatment of Spousal Support Spousal support (commonly referred to as alimony) is considered fully taxable in the hands of the former spouse or common-law partner.

Can I claim spousal maintenance?

Under the Family Law Act, a legal or de facto spouse may claim spousal maintenance after separation. If a spouse is entitled to spousal maintenance, the spouse with the higher income must provide him or her with financial support. This may be paid periodically or as a lump sum, depending on the circumstances.