Remember to Consider Tax Credits During a Divorce

The details that Georgia residents would be wise to consider when ending their marriage can seem endless. Every time they turn around, there may be something else to consider. Unfortunately, that is something that is necessary when it comes to divorce because there are so many critical elements that could have lasting effects on someone if the individual is overlooked. 

One specific issue that divorcing parents may find themselves having to consider now is how to handle tax credits during and after a divorce. It is no secret that parents receive child tax credits and other tax benefits, and when the parents are married, it helps reduce the household tax obligation. However, it may not be possible for both divorced parents to claim those credits, which can mean that individuals may be fighting for that privilege during divorce proceedings. 

Such credits could offer thousands of dollars in savings, but stipulations apply, including the following: 

  • A parent must pay for at least half of the child’s expenses to be eligible for the child tax credit. 
  • The child must also live with the claiming parents for a minimum of half the year. 
  • The parent allowing the other parent to claim the credit will need to file the appropriate form. 

Money is often a sticking point in divorce cases, and if Georgia parents overlook possible tax breaks during their negotiations, they could regret it later. Taxes are often complicated on their own, and throwing in ending a marriage can make it even more complicated. However, reaching a favorable marriage dissolution settlement first could be beneficial.

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