Now that the holidays are over, we are all starting to think about filing our 2014 income tax returns. Before filing your returns, it is important to communicate with your accountant regarding certain Probate and Family Court orders that may impact your filing. There are Tax Consequences in Divorce. For instance, you should be sure that your accountant is aware of all court orders regarding financial support. Generally speaking, alimony payments are taxable income to the recipient and tax deductible to the payor. Conversely, child support payments are non-taxable income to the recipient and included in the payor’s taxable income. It is imperative that your accountant is fully informed of any and all support orders to ensure that your income tax returns are properly prepared.
- Jennifer R. Silva, Esq.
