Atlanta Lawyer Helps Recently Divorced Understand Tax Changes
As April 15 approaches, Harmon Caldwell advises recently divorced individuals to take a second look at possible tax changes
Atlanta, GA, April 14, 2015 (Newswire.com) - According to Harmon Caldwell, many recently divorced individuals are unaware of the tax changes they may encounter this tax season. In an effort to increase awareness about the possible changes, Harmon is reaching out to the newly separated with his expert advice.
“Unfortunately when a couple is getting a divorce, many aren’t aware of how this new separation will affect filing their taxes,” said Harmon Caldwell. “With April 15 right around the corner, I want to be sure that the recently divorced are fully aware of what they should and shouldn’t be doing in terms of their taxes.”
The following are specific tips for recently divorced taxpayers who face the April 15 deadline:
· Marital Status: If the divorce was finalized in 2014, the two parties must file separately. If it wasn’t finalized prior to December 31, the two parties may file a joint return or as “married filing separately.” Filing jointly will likely save both parties money from bigger deductions in a gentler tax bracket, but each party can be held responsible if there are mistakes on either tax return.
· Taxes on Alimony and Child Support: The recipient of any amount of alimony money must pay taxes on the payments, as it is considered income. The provider of the alimony money may write off the payments. Conversely, child support is not taxed and cannot be deducted.
· Claiming a Dependent: Only one parent is able to claim their child as a dependent. The parent who has custody is given claim to the child, unless another agreement is reached.
· Mortgage Interest Deduction: The party who keeps the house after a divorce is able to capitalize on the mortgage interest deduction. Monthly mortgage payments cover the principal on the loan and the interest on the mortgage, which is tax deductible.
· Taxes on Divorce Lawyers: The only fees that are tax deductible are those that are paid when an attorney is working on tax related issues, such as alimony. All other fees are not deductible.
· Asset Transfer: The recipient of assets doesn’t have to pay taxes on a property transfer, but will have to a pay capital gains tax on the appreciation before and after the transfer when the property is sold.
Harmon is available to discuss this topic, as well as any other topics related to family law. If you are interested in interviewing Mr. Caldwell or having him submit a guest article to your publication, please contact Emily Tracy at email@example.com.