TIPS FOR NAVIGATING YOUR TAXES FOLLOWING A DIVORCE
When a marriage ends in divorce, there’s likely to be a lot of confusion, worry and stress on the part of one of the spouses. This is due to the fact that the other spouse probably handled all of the finances, including the annual tax returns filed with the state of California and the federal government. This can be overwhelming for someone to pick up and learn on a short notice, so here are some tips for dealing with taxes in a divorce.
One of the most important things you need to do right off the bat when preparing for a divorce is to find out if you will be responsible for delinquent taxes. Since we are still in the middle of tax season, you will be responsible for any unpaid taxes if you filed a joint return. This is true even if you did not earn any income for the year you filed.
The next step is to put together an income tax projection. This will help you understand your tax situation for the current year. When doing so, you will be able to avoid any surprises once tax day rolls around again, take advantage of any tax savings options and avoid the underestimation of tax penalties that might be assessed.
When you understand the tax situation you are in, you will be able to make better investing decisions with your money. You will also be able to better plan for the future.
Now that you know what you should do in the event of a divorce, be sure to look into your finances and learn about your tax returns. It will help you move forward as a single person in California.
Source: Monterey Herald, “Barry Dolowich, Tax Tips: Navigating taxes after a divorce,” May 01, 2018