Passaic County Separation or Divorce Could Affect Your 2018 Taxes Next April
Find out how your taxes could be affected by your divorce from Passaic County Lawyers serving clients in Woodland Park, Clifton, Wayne, Little Falls, West Milford, and Paterson how your 2018 income tax refund might be affected by your marital separation or divorce
Claiming child tax deductions through divorce is different this year!
The status of your relationship (separated or officially divorced) in 2018 will affect how you prepare and file your 2018 taxes (to be filed in 2019). New Jersey is one of the U.S. states that will be most affected by the new tax laws that apply in 2018 and in all years after. In this article, we will cover just a few of the areas where you could be affected by divorce, including filing status, dependent deductions, health insurance coverage issues, and deductions for IRA contributions.
Income Tax Filing Status During Divorce: Clifton Lawyers can help
Your only options are to file as “Married Filing Jointly” or “Married Filing Separately” if your divorce is not legally official by December 31 of any tax year. In other words, without a legal separation or divorce, you are considered married for the entire year. If you are legally not married for the entire year and you have a qualifying dependent, you may have the option to file as “Single” or “Head of Household”.
Dependents and Deductions: Who gets to claim them? Milford Attorney Responds
If your divorce is finalized but does not include a joint custody arrangement, only the custodial parent can claim a dependent child. Until your separation or divorce is finalized by a judge, you are limited to filing Married Filing Jointly or Married Filing Separately options. If you’re in the process of separation and divorce, you could claim your dependent(s) all on one joint tax return (Married Filing Jointly) or file separate returns (Married Filing Separately) with one child claimed per return.
Health Insurance Coverage: Get Reliable Advice
If you lose coverage through a divorce, it is considered a life event that allows you to enroll in health coverage through the Marketplace during a Special Enrollment Period. This allows you to be able to report on your tax return that you had insurance throughout the year. Otherwise, if you do not have insurance, you will need to either claim an exemption or pay a penalty. If you and your former spouse are enrolled in the same Marketplace health insurance policy, you need to calculate your Premium Tax Credit amounts on separate tax returns and reconcile any advance payments that were made on your behalf. Until you are legally divorced, regardless of living status, your health insurance coverage usually does not change.
IRA Retirement Account Contributions: Check with Woodland Park Attorneys
If you are not legally separated or divorced by December 31 of the tax year, you will be able to deduct any contributions you make to your soon-to-be ex-spouse’s traditional IRA. Otherwise, you can only deduct contributions to your own traditional IRA.
The family law lawyers at The Montanari Law Group are here for you with the expertise and experience to guide you through the tax laws, now and into the future. Contact a divorce and family law attorney today for a free consultation.
A divorce or separation is just the beginning of many personal and financial changes, including how you file your tax returns during and after divorce. This article highlights just a few of them. For more detailed information about how these changes could apply to your circumstances and filing in April, and to get the maximum refund possible, contact the family lawyers at The Montanari Law Group with offices across Passaic County. Combined with tremendous and diverse experience, the law firm of The Montanari Law Group has the legal and financial knowledge to confidently resolve complicated tax questions or situations for you.