Mark Stevens, CFP®
mark@wealthcarenetwork.org
 
 




Planning for Remarriage

Marrying someone with children from a prior relationship can create a variety of income tax questions. Here are some points to consider.

 

Remarriage with Children: Income Tax Considerations

Alimony payments: Pre-2019 divorce

  • Usually must be included in the gross income of the recipient
  • Can be deducted by the payer (if all requirements are met)
  • The divorce agreement may designate alimony as nontaxable and nondeductible

Alimony payments: Post-2018 divorce

  • Not included in the gross income of the recipient
  • Can't be deducted by the payer

Child support payments

  • Ordinarily considered nontaxable income of the recipient
  • Are not deductible by the payer

Medical expenses deduction

  • Custody of the child isn't required
  • Claiming the child as a dependent isn't required (although you must be eligible to claim the child as a dependent)
  • Medical expenses are only deductible as an itemized deduction on Schedule A, Form 1040, to the extent they exceed 10% (in 2019) of adjusted gross income (AGI) on the tax return.

Child and dependent care credit

  • Can only be claimed by the custodial parent
  • Must be for child-care expenses incurred so you can work
  • Can claim, if qualified, even if you're not claiming the child as a dependent because you release the right to claim the child to the noncustodial parent

Child (and additional child) tax credit

  • Can claim, if qualified, for a child you claim as a dependent
  • Custody of the child isn't required

Education tax credits

  • You must be claiming the child as a dependent
  • You must have paid qualified tuition and/or related expenses




This communication is strictly intended for individuals residing in the state(s) of GA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.