Tax Issues for Divorcing Couples

Overview

Although exact figures are hard to define, it is generally accepted that between 40 and 50 percent of first marriages in the U.S. end in divorce. The rate is even higher for second and third marriages. As a result, divorce and tax-related divorce issues are becoming more and more prevalent in the operations of tax practices throughout the nation. 

This course is aimed at helping tax professionals understand their role with regard to divorcing clients and how to protect themselves as well as the rights of their clients as they go through the stages of a divorce. By asking the right questions, tax professionals will be able to properly assess the situation of divorcing couples and determine the best tax situation to obtain the lowest legal tax liability.

Learning Objectives

After successfully completing this course, you will be able to:

  • determine when a couple is divorced according to the IRS regulations
  • identify the correct filing status for taxpayers with dependents, including in cases where the dependency exemption has been released to the noncustodial spouse
  • identify payments that qualify as alimony and the associated reporting requirements by both spouses
  • identify the conditions that must be met for the transfer or property between spouses incident to a divorce to qualify as a tax-free exchange under IRS § 1041
  • identify the underlying principles of innocent spouse and injured spouse relief and recognize the differences between the two

Tax Year: 2019

Designed For

CPAs, EAs, and other tax professionals
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