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Common tax questions divorcees need answers to

As we begin the first week of March, we know that this month is known for three things: the end of winter (and the end of snow), the NCAA Tournament and the Sooners’ march to a championship, and the frantic rush to complete federal income tax returns. A number of our readers look forward to the first two, but getting tax returns ready may be anything but a picnic for those getting divorced. It is the uncertainty and questions that may drive them crazy. With that said, we offer a post that can help answer some of the most common questions as you prepare to divorce

What is your tax filing status? – Even though you may be emotionally divorced or may be living separately, your tax filing status may not change until your divorce is finalized. Essentially, if you were still married on December 31, 2014, you are still married for tax purposes.

Who claims the child tax credit?– Yes, you may currently have joint physical custody of the kids, ,  there may be a question over who can claim the child tax credit each year. Basically, only parent may claim a child on their return. So there may have to be some compromise over how it is used. Perhaps the parents can alternate its use or if there are multiple children, each parent can claim one.  

Is there additional income to report?–If your divorce settlement includes profits realized from the sale of real property or securities, you could be liable for capital gains taxes.

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