Divorce can affect taxes in several ways.
After a divorce, you typically file as “single” or “head of household”, rather than “married filing jointly”. Doing so has the ability to impact your tax bracket and rate. If you have children, you may need to determine who claims them as dependents, which can affect credits and deductions.
In regards to health insurance, if you are on your spouse’s health insurance, you may need to find new coverage, which could impact your taxes if you have to purchase your own plan. As far as retirement accounts, dividing retirement accounts can have tax implications, especially if not done through a Qualified Domestic Relations Order.
These are just a few examples of taxable implications of a divorce. It is always best to sit down with your attorney and financial advisor to better understand how your specific tax situation can be impacted.
If you have any questions about the topic discussed in this article, or any tax matter, please give us a call at Bononi & Company 724-832-2499.