Divorce and custody agreements
If you or your ex-spouse intend to claim exemptions for your qualifying children, your divorce and custody agreements will come in useful come tax-filing time. “If the divorce agreement doesn’t specify who gets to claim the kids, the exemption goes to the custodial parent. In the case of joint custody, the parent who has held the child longer during the tax year will be able to claim the exemption,” says Gonzalez.
Alimony payments
Speaking of divorce and children, alimony payments are alive and well in the American divorce system. Whether you are the recipient or payer of the alimony, always keep proof of payments. “Alimony is deducted by the payer, and the recipient of alimony must also include it in their income,” according to Gonzalez.
