Tax Tips For Divorced Men
Tax season is quickly approaching, and for divorced men, this can be even more stressful than usual because of alimony, or maintenance, payments and child support.
You thought that you had survived the worst part of the year, the holidays, when the effects of your divorce are at their highest point. Finally you don’t have to worry about which days you will be able to see your kids, or how you can celebrate the holidays with them.
But, after a divorce, 97 percent of alimony payors are men, according to the US Census Bureau. Unsurprisingly, men also account for 85 percent of those ordered to pay child support.
So, chances are, you are likely paying both alimony and child support. These payments add up quickly, and it can seem overwhelming and crippling to send these out every month.
With all these payments, figuring out how to pay taxes is not easy. Here are some tips for filing for your taxes to help you during this stressful time:
Child support is not deductible from your taxes, but there is a child tax exemption, which usually benefit the custodial parent.
In 5 out of 6 cases, the mom is the custodial parent, so she will often receive the tax exemption, even if you paid for most of the child’s expenses.
Here’s where there is a benefit for men. Alimony payments are tax-deductible for the spouse paying them, and alimony received is completely taxable.
Although paying alimony is often unfair, at least you can deduct it from your taxes.
Hopefully these tips are helpful for filing your taxes this year so that you can receive the most benefit in this often biased system.