Child support vs. Alimony.
Alimony is no longer deductible by the payer spouse and includible in income by the recipient spouse. This rule only applies for divorce or separation agreements executed after December31, 2018, and instruments executed on or before December 31, 2018 but modified after that date to include these new provisions. Child support payments are neither taxable nor deductible. Make sure your agreement clearly lists which payments are for which purpose and discuss with your accountant.
Ex spouse Social Security benefits.
As a result of the “Bipartisan Budget Act of 2015” divorced spouses may collect Social Security Benefits from their ex spouse under certain circumstances. Criteria include the length of the marriage, current marital status, and age to name a few. For full details you should check with your social security office and consult your tax preparer and attorney to get details on eligibility, documentation and tax consequences.
If you have purchased health insurance through the government “Marketplace”, and depending on your income level and marital status this may impact your taxes. You will receive a 1095-A form and must complete and return a form 8692. Form 8692 is quite complex and you should review with your tax preparer. Some of the parameters include taxpayers divorced or legally separated this past year, and taxpayers married at year end but filing separate returns with one spouse filing as Head of Household. The Tax Cuts and Jobs Act of 2017 has eliminated the requirement for individuals to carry health insurance (the individual mandate). This is effective Jan 1, 2019.
A child can be treated as a dependent of both parents for medical purposes. Each parent may deduct the medical expenses he or she pays for the child regardless of which parent claims the dependent deduction.
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