Tax Issues of Divorce Self-Study
Divorce can be an emotional rollercoaster for the parties involved. Understanding the complications and economic effect at the tax levels reassures the taxpayers that their returns have been properly prepared. It’s your responsibility as the tax preparer to explain the tax implications of divorce, and report income and expense correctly on the individuals’ returns.
When children are involved, it can be tricky to determine which taxpayer can claim a child for certain tax provisions. Knowing how to distinguish between child support and other payments is required to properly complete the tax return. Being prepared when clients come to you in the midst of divorce can alleviate 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 treat a child as a dependent
- Recognize the difference between custodial and noncustodial parent for tax purposes
- Differentiate among 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 a net operating loss, 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.