Income Tax Returns For Divorced Individuals

Assisting a separate taxpayer is carefully finesse on several issues. There are many misconceptions about the preparation of tax returns, following a divorce. This often leads to inaccurate tax returns filed.

Fortunately, some income tax issues resolved in favor of the taxpayer. A knowledgeable IRS Registered Agent (EA) provides useful services to avoid confusion and accurate tax return to resolve all the available tax credits. EA continuing education requirements assure that people with EA certification remain thoroughly trained.

The first concern of the recently divorced people filing status. The marital status of a person on the last day of the year determines the filing status for the entire year. Anyone with a final decree of divorce or separation agreement on December 31 is considered unmarried.

Married persons can file jointly or separately. A married person can only file as head of households considered unmarried filing status purposes. This requires that the taxpayer have a qualifying child, pay for more than half of operating expenses for the year, and have lived separate from a spouse for all parts of the last six months of the year. Obtaining assurances that taxpayers are not misleading to pretend these circumstances to the head of household status is part of the training received in a course registered agent ethics.

The biggest confusion among divorced persons dependent children. A registered tax agent knows that divorce or separation agreement, the relevant document in these cases. It specifies which parent is usually a dependency exemption for income tax granted. If the document is silent on this issue, the parent with custody for more than half of the year is considered the custodial parent and the child as dependent claims.

Having a child as a qualifying dependent child also requires that no more than half of his or her own support and be under the age of 19 at the end (or 24 years as a full-time student).

The non-custodial parent, the child as a dependency exemption if the divorce or separation agreement so provides. In addition, the custodial parent can release the exemption to the non-custodial parent by filing Form 8332 with the IRS.

The custodial parent may still file head of household without claiming the status of the dependent child, where the dependency exemption is allowed for the non-custodial parent. The non-custodial parent can not claim head of household filing status even though right to the dependency exemption for the child.

In addition, the non-custodial parent is not entitled to the earned income credit or the child and dependent care credit. A non-custodial parent taking the dependency exemption is entitled to child tax credit. However, the parent entitled to the dependency exemption is entitled to these funds if that individual is the custodial parent.

After the many steps needed to achieve accurate reports is a basis for tax professionals to receive continuing education annual fiscal training.

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