Services We Offer
  Tax Preparation and Filing

Whether you’re a self employed individual or filing as a corporation, get peace of mind with taxes done correctly and efficiently. (Get More Info)

  IRS Tax Problems Resolution

Whether you’re facing tax levies, liens, or garnishments, don’t face the IRS alone. We may even be able to arrange a reduced payment. (Get More Info)

  Business Registration

Need help registering your new business as an LLC, corporation, or partnership registration? Keep it simple – let us help! (Get More Info)

  ITIN Application

Do you need an Individual Tax Identification Number(ITIN)? We are authorized by the IRS to assist you in obtaining one. We can help! (Get More Info)

  Accounting and Bookkeeping

If you’re not a bookkeeper or accountant, spending time on this task is decreasing your profits! Our services can help your business grow! (Get More Info)

  Payroll Processing

Payroll is a hassle and a huge time drain for small businesses. Let us help with all aspects of your payroll processing (Get More Info)

  Notary Services

When you need notary services, we’re your trusted partner. We provide fast service for your notary needs. (Get More Info)

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Streamline your filing process and avoid the risk of process glitches. We can help you.

Contact Information
KF Tax & Accounting, P.C.

1970 Rawhide Drive, Suite 204
Round Rock, Texas 78681

Tel:  512-244-1516
Fax: 512-244-1567

Email: enquiries@kftaxandfinancials.com
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Tax effects on divorce or separation

Posted by kftaxaccounting2014 on August 26, 2015 in Divorce or separation and health care | 0 comment

Even though income tax may be the last thing on your mind during or after divorce or separation, you should be aware of its effects on your taxes.

The first thing you should know is about child support, either you receive or you pay child support, you should know it is not taxable and cannot be claimed on your tax return during tax year.

Also, If there is any written  separation  agreement or  any form of maintenance decree agreement between you and your spouse and you make payment based on this, then you may be able to deduct them as alimony paid if the payments qualify  as alimony for federal tax purposes only. But if you receive alimony, then you should know it is taxable during tax year. But the good thing is that alimony is not subjected to tax withholding, so to avoid the penalty, you can increase the amount (estimated tax payment)you pay for tax or increase the amount of tax withheld during the tax year from your wages.

If you contribute towards traditional IRA on your own, you may be able to deduct it during the tax year. But if you contributed towards your spouse’s traditional IRA and you receive the final decree of divorce or separation maintenance by the end of the tax year,then it cannot be deducted in your tax return.

In addition, the health care law prohibits you from not having health insurance, divorce or separation is not an excuse, you should make sure to enroll  with the health insurance market place during the special enrollment period.

And lastly, to prevent delay on your refund when you file during tax season, if you consider changing your name after divorce or separation, you should file form SS-5(Application for a social security card).

 

 

If you and your former spouse or partner are enrolled in the same health coverage and you do not know how  to go about the shared policy allocation, reach out to  the tax professionals today, we will help you through this time to avoid any form of penalty from the IRS.

 

 

Director, Tax and Accounting
Tax Accountant specialized in Tax Accounting, IRS Representation & Resolution of Complex Tax Matters, Individual and Corporate Tax planning, and Tax Advisory Services.

Specialties: Tax Resolution, Tax Planning, Financial Planning and Analysis, Budget Management, Payroll Management, Cost Management and Optimization, SAP, Oracle, Hyperion, PeopleSoft

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