Tax Season Approaches. Questions & Answers with Jim Mueller.

Will either my spouse or I have to pay income tax when we transfer property or pay a property settlement to one another according to our divorce?

No. However, it is important that you see the future tax consequences of a subsequent withdrawal, sale, or transfer of certain assets you receive in your divorce.

Is the amount of child support I pay tax-deductible?

No.

Do I have to pay income tax on any child support I receive?

No. Your child support is tax-free regardless of when it is paid or when it is received.

Can my spouse and I split the child-care tax credit?

Ask your attorney, accountant, or other tax advisors how the value of the federal income tax credit for child care must be applied.

Should I file a joint income tax return with my spouse while our divorce is pending?

Consult your tax advisor to determine the risks and benefits of filing a joint return with your spouse. Compare this with the consequences of filing your tax return separately. Often the overall tax liability will be less with the filing of a joint return. But other factors are important to consider.

When deciding whether to file a joint return with your spouse, consider any concerns you may have about the accuracy or truthfulness of the information on the return. If you have any doubts, consult your attorney and tax advisor before agreeing to sign a joint tax return with your spouse. Prior to filing a return with your spouse, try to reach an agreement about how any tax owed or refund expected will be shared, and ask your lawyer to assist you in getting this in writing.