Is divorce expenses tax deductible?

Legal fees you paid for a divorce are considered personal expenses. You may only deduct legal fees related to doing or keep your job. These fees may be deductible because they will increase the seeker’s taxable income.

Who claims the mortgage interest deduction after divorce?

If the house is owned jointly after a divorce, and both former spouses are still paying the mortgage interest, then the deduction can still be split equally. If the house is in the name of only one ex-spouse, then only that individual has the right to claim the deduction.

How are parents separated under a divorce decree?

The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or. Lived apart at all times during the last 6 months of the year, whether or not they are or were married.

How does a divorce affect the standard deduction?

See Publication 501, Dependents, Standard Deduction, and Filing Information PDF, for more information. Divorced parents have joint custody of a child and the marital settlement agreement by the court provides for the parents to alternate claiming the child as a dependent. How does this affect the EITC?

Is the divorce decree binding on the IRS?

Furthermore, only the party entitled to claim the dependency exemption may claim the child tax and education tax credits. Your divorce decree is a binding agreement for you and your ex-wife, but it is not binding on the IRS.

Can a child be claimed as a dependent by a divorced parent?

The taxpayer is entitled to claim the child as a dependent or would have been so entitled except that the taxpayer released a claim to exemption for the child under the special rule for divorced or separated parents discussed above.

How does a divorce decree affect a child?

The divorce decree at issue in this case provided that the father would claim the child as a dependent for federal and state purposes for even years and that the mother would claim the child as a dependent for odd years. The child lived with the father 6 out of every 14 nights during the school year and every other week during the summer.

Can a noncustodial parent claim a child in a divorce?

A recent case from the Tax Court explains the special “qualifying child” rule for children of divorced parents. Although it has been in place for decades, the rule still causes confusion, especially among clients. A divorce decree may grant a noncustodial parent the “right” to claim a child as a dependent.

Can a divorce decree address the dependency exemption?

The court stated that a divorce decree addressing the dependency exemption deduction, standing alone–that is, without the custodial parent’s signature on it and without being attached by the noncustodial parent to his or her return—has had no impact on a divorced parent’s entitlement to the deduction since the statute was amended in 1984.