|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.