Basic Marital Tax Matters

Description

In this course, initial marital tax matters such as living together, property rights, premarital agreements, filing status, exemptions and dependents are explored. The detailed support test for children of divorced or separated parents, the tax treatment of back child support, the deduction of divorce costs, and estimated tax payments are reviewed. Emphasis is given to marital property rules, married versus unmarried tax rate comparison, head of household status, and treatment of refunds and deficiencies.

Highlights

• Marital status • Joint return • Separate returns • Head of household • Exemptions • Divorce costs • Withholding and estimated tax • Community property states • Ending the community • Living together

Objectives

• Identify marital status and the effect marital status has on filing status, cite the tax advantages and disadvantages of a filing status and, specify the requirements for filing as head of household and the exemptions associated with spouses and dependents. • Recognize the differences between custodial and non-custodial parents including how the status affects dependency, identify the application of special support rules, and specify the dependent child income standards. • Determine common law and community property specifying their effect on marital and divorce planning, and identify the circumstances when payments qualify as 71 alimony.