Tax season always brings up several questions for clients who are divorced, in the process of divorce, or separated. The two biggest concerns are typically determining which filing status is most applicable to your situation and whether or not you should claim your children on your taxes.
First, let’s take a look at your tax filing status. Many questions are probably going through your head at the moment. Do you file as married, separate, head of household, or a joint tax return? These are all great questions, and they are a clear indication that now, perhaps, more than ever, it’s critically important that you enlist the services of an accountant.
This year finding the right filing status for your family is even more important due to the 2020 stimulus checks, unemployment benefits that may have been received, and the increased child tax credit. Clients should also discuss with their accountant deductions that may not have been previously available. For instance, Pennsylvania may permit you to deduct expenses if you worked at home in 2020.
Now is the time to have these discussions with an accountant. Figuring out all of the details in advance of filing will prevent delays. The IRS has extended the date for filing 2020 taxes to May 17, but it is important to do so as soon as possible. The best advice a family law practitioner can give to a client is to speak with their accountant and run the calculations to figure out the best scenario for their family.
Want to learn more? Check out our podcast episode, Let’s Talk Family Law Taxes for an in-depth discussion with Donna Pironti, a forensic accountant specializing in matrimonial litigation support and tax consulting.