The Impact Of A Florida Divorce Filing On Future Tax Returns
The impact of filing for a divorce in Florida will be widespread and can lead to many changes for the people involved. Often, the spouses involved will not be aware of all of the complications a divorce will create. A divorce will have far reaching consequences and a Tampa divorce lawyer will need to be fluent in many areas of law in order to properly represent their clients. For instance, filing for a divorce in Florida will require the spouses involved to be aware of the possible tax consequences and changes to their tax filings. Tax law is confusing by itself, and can get even more complicated when a divorce is involved. Therefore, it is important to hire a seasoned Tampa divorce attorney who is knowledgeable of tax law and can advise you on the possible consequences the divorce will have on your tax filings.
The most common tax law issue arising during a divorce is the filing status the spouse should file as when the divorce is still pending. Under U.S. tax law, the filing status of a taxpayer is determined on the last day of the year. Therefore, if the divorce is still pending on December 31, the taxpayer may need to continue filing a joint return. On the other hand, if the divorce was finalized on or before December 31, the taxpayer will need to file the tax return as a single taxpayer. If the divorce is finalized the taxpayer may also be able to file as head of household. A taxpayer may want to file as head of household because it can lead to a lower tax liability and more tax deductions may also be available. In order to file as head of household the taxpayer will need to provide a home and more than 50% of the support of at least one dependent. The tax filing status is a basic issue which most Tampa divorce lawyers can assist with rather easily. However, there are many other more complex tax law issues that will need to be resolved while the divorce is still pending.
The right to claim the children as dependents on the tax return can be a complex issue and lead to much litigation after the divorce has been finalized. That is why a Tampa divorce attorney should always try to resolve which spouse is entitled to claim the children as dependents during the divorce settlement negotiations. The IRS is not concerned with which parent claims the dependent, thus it will be a decision left up to the parents and Tampa divorce attorneys involved. The right to claim the children as dependents on the tax return may save the client thousands in tax liability. Unfortunately, many Tampa divorce lawyers are unaware of this tax law benefit and will overlook it during the settlement negotiations. Only one parent is permitted to claim the child as a dependent, so the issue will eventually need to be addressed if it was not resolved during the settlement negotiations. Settling the issue early on in the divorce process can lead to lower attorney fees and less stress for the parents involved.
The Tampa divorce lawyers are Florida Law Group are all well versed in many areas of law and can assist you with all aspects of the divorce. If you have a divorce already pending or are considering filing for a divorce contact Florida Law Group for legal assistance today.