Tax Issues of Divorce
Divorce can be an emotional rollercoaster for the parties involved. Understanding the complications and economic effect at the tax level will reassure divorcing clients that their returns have been properly prepared. As a tax professional, it’s your responsibility to explain the tax implications of divorce and report income and expense correctly on individual returns. When children are involved, it can be challenging to determine which taxpayer is allowed to claim an exemption for a child. Knowing how to distinguish between child support, property settlements and alimony is important because it can impact the taxpayer’s tax liability. Being prepared when clients come to you in the midst of divorce can alleviate some tax filing problems.
Upon completion of this course, you will be able to:
- Identify the most appropriate filing status for separated or divorced taxpayers.
- Summarize the exceptions to both spouses being jointly and severally liable when filing a joint return.
- Distinguish which parent is eligible to claim a child as a dependent.
- Recognize the difference between custodial and noncustodial parent for tax purposes.
- Differentiate between alimony, child support, and property settlements.
- Summarize the tax treatment of a qualified domestic relations order (QDRO).
- Determine if a divorced taxpayer has a carryover of an NOL, capital loss, or passive loss.
- Assess community property state complications.
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.