F iling Y our T axes A fter a D ivorce
WHAT YOU NEED TO KNOW
Divorce is a difficult time in anyone’s life, and there are plenty of life adjustments that you will need to make. From finding new living arrangements to figuring out a new schedule for your children, there are many things to consider after a divorce. You probably aren’t thinking about how filing taxes will be different after the divorce, but it’s certainly something you should consider. Once your divorce is finalized, your tax status will likely change. You may have been filing as “married filing jointly” previously but now need to change it to “single” or “head of household” in the next tax year. When doing this, you need to keep in mind that your filing status will be determined by the date your divorce was finalized. If it’s finalized after the last day of the tax year, you may need to file jointly or file your own as “married filing separately.” Additionally, you also have to figure out who will receive the child tax credits. If one parent has sole custody over the child, it’s likely that they would receive this credit, but there are certain circumstances and situations that allow for the noncustodial parent to claim it. Some couples even choose to alternate who uses it each year.
or ex-spouses, it is a nontaxable event. Likewise, if the couple owns a business together and one spouse buys the other out or they continue to co-own the business, it is a nontaxable event. But if the business is sold to a third party, it could end up being a taxable event. Furthermore, alimony payments are also no longer taxable as of 2017. Divorce is difficult enough as is, and you don’t want to add issues with the IRS to your struggles. If you’re unsure where to turn or what steps you need to take in your divorce, give our office a call.
There are a few other situations to be aware of if you’re going through a divorce. If property is being transferred between spouses
J ust L ike R iding a B ike
CYCLING IS THE PERFECT ACTIVITY FOR ALL AGES
You likely learned how to ride a bike as a kid — according to a 2013 survey, about 94% of American adults did. Even if it has been a while since your last ride, most people agree you never forget how, and you don’t have to be in
get the heart rate up without feeling too strenuous, making it optimal for beginners. Older adults and people with knee problems also use biking as an alternative to other forms of exercise because it’s easier on their joints. Meanwhile, those looking for a challenge can easily find one. If you want a strenuous workout, it’s easy to ride farther, increase the resistance on your bike, or pick a steeper bike trail to explore. Biking is only a cakewalk if you choose to make it one. Since it’s perfect for all ages, cycling is the ideal outdoor activity to do with your family, allowing everyone to be involved in quality time together while promoting their health. To get started, make sure everyone has a bike they can use comfortably and a helmet that fits, plus understands bike safety. Once the basics are taken care of, you’re ready to hit the trails or explore the neighborhood. Even if you never learned how to ride, there’s no time like the present. You might feel a little silly at first, but the benefits of cycling will serve you — and your family — well for the rest of your life.
great shape to get started. Outside of walking, biking might be the most accessible exercise for all ages and ability levels.
The beauty of biking is that it can be as relaxing or challenging as you want. The average kid learns to ride at around 5 years old, so the basics aren’t complicated. Biking helps young children get outside and gives them a taste of being a “big kid.” As a result, it’s excellent for their self-esteem as well as their fitness.
Cycling is also perfect for adults who are new to exercise or need a low-impact activity. A short ride on a flat surface will
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