Tax Deductions to Claim When You Get a Divorce

The IRS does not allow you to make any deductions for legal fees during divorce proceedings. With that out of the way, let’s go into the tax deductions which you can claim when you get a divorce. This is a highly complex issue, so when in doubt call a professional to help.DivorceScrabble

Alimony

You may not be able to deduct the legal fees from divorce proceedings, but you can deduct legal fees used to collect alimony. Nevertheless, the key is what can be deducted must always be specifically designed for alimony. In addition, you must have proof of alimony based fees.

Tax Advice

Tax research into things like property transfers in the event of a divorce can be deducted from your taxes. Tax research tends to take the form of asking a legal professional to review your latest tax situation when you convert from being someone’s spouse to being single again.

Allocation of Fees

Do remember to ask your attorney to bill for tax and non-tax services. This is essential because if the IRS decides to audit you, you will have to show paper evidence of your deductions. Failure to do so could mean paying a hefty chunk of money back to the IRS later.

Child Support and Alimony

Child support is not deductible on the tax return of the person who paid it. On the other hand, alimony is. Make sure you split off these two transactions. Avoid rolling them into “family support” because then everything will become taxable.

Conclusion

It is wise to call a tax professional if you struggle with any of these deductions. These things require you to file in a specific way.

Image credit: Cordell and Cordell

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johnAbout john
Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Huddleston Tax CPAs of Seattle & Bellevue
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Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.