This information is from the IRS website.
Divorce or separation can mean big changes on your taxes. Spousal support, also called alimony, and a name change are just a few things you may need to consider. Here are some tax tips to keep in mind if you are recently divorced or separated.
Child Support and Spousal Support
If you pay child support, you can’t deduct it on your tax return. If you get child support, the amount you get is not taxable.
Spousal Support/ Alimony Paid
If you make payments under a divorce or separate maintenance decree or written separation agreement, you may be able to deduct them as alimony. This only applies if the payments qualify as alimony for federal tax purposes. If you aren't required to make the payments, they do not count as alimony.
Spousal Support/ Alimony Received
If you get alimony from your spouse or former spouse, it’s taxable in the year you get it. Taxes aren't withheld from alimony. You may need to increase the tax you pay during the year to avoid a penalty. To do this, you can make estimated tax payments or increase the amount of tax withheld from your wages.
If you change your name after your divorce, notify the Social Security Administration. File Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov or call 800-772-1213 to order it. The name on your tax return must match SSA records. A name mismatch can delay your refund.
Special Marketplace Enrollment Period
If you lose your health insurance coverage due to divorce, you are still required to have coverage. You must have it for every month of the year for yourself and the dependents you can claim on your tax return. Losing coverage through a divorce is considered a qualifying life event. It allows you to get health coverage through the Health Insurance Marketplace during a Special Enrollment Period.
Changes in Circumstances
If you buy health insurance coverage through the Health Insurance Marketplace, you may get advance payments of the premium tax credit. If you do, you should report changes in circumstances to your Marketplace throughout the year. You should report a change in your:
- marital status
- family size
Reporting changes will help make sure that you get the right kind and amount of financial assistance. This will also help you avoid getting too much or too little credit in advance.
Shared Policy Allocation
If you divorced or were legally separated during the tax year and are enrolled in the same qualified health plan, you and your former spouse must allocate policy amounts on your separate tax returns to figure your premium tax credit and reconcile any advance payments made on your behalf. Publication 974, "Premium Tax Credit," has more information about the Shared Policy Allocation.
Every taxpayer has a set of fundamental rights when dealing with the IRS. These are your Taxpayer Bill of Rights
Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
Publication 555, Community Property
Publication 974, Premium Tax Credit
- Changed Your Name After Marriage or Divorce? – English | Spanish | ASL
- Premium Tax Credit: Changes in Circumstances – English | Spanish | ASL
- Premium Tax Credit – English | Spanish
- Changed Your Name After Marriage or Divorce? – English | Spanish