Peaceful Divorce

Have You Started Preparing for Your Taxes Yet? Don't Get Surprised by an Unexpected Tax Bill - Do a Projection!

Autumn is upon us, and there is no better time for divorcing spouses to start thinking about tax preparation for the year 2014.

Even though we're 7 months away from having to file our taxes, once the clock strikes midnight on December 31, there's not much you can do. What if you didn't withhold enough? Wouldn't you like to know that beforehand?

I highly recommended getting a tax projection done to find out.

What do you need in order to have this projection done?

  • Your income for 2014. If you are salaried, you can figure out what your income will be for the rest of the year. If you're on commission, you might have to estimate. Remember that if you're receiving alimony, it's taxable income, and if you're paying alimony, it’s tax-deductible.
  • If you’ve signed your divorce decree at any time in 2014, you will be considered divorced for the entire year. When doing your taxes, make sure you have copies of your divorce settlement agreement so that you can list alimony and other items that are relevant.
  • Dividends on investments that you hold. You can look at your brokerage statement for September and get a close guess.
  • Ask your broker for a YTD estimate on realized capital gains or losses.
  • You can project what your mortgage interest is by looking at what you have already paid YTD, and calculating what the last three months will be.
  • Estimates of charitable contributions, based on previous years.
  • Look at your medical bills, doctors, dentists, hospitals, prescriptions, and other medical items.
  • If you purchased a home or refinanced in 2014 make sure you have your closing documents.
  • You should know what your real estate tax is by now; and finally;
  • It's always a good idea to check with your former spouse to make sure you are both using the same number off of which to base your alimony calculations - and that your other numbers agree, too.


Being proactive in October or November, rather than waiting until April, is a prudent move. Have you done a projection yet? If not, I can help - contact me today.

The Inside Scoop on the New Mortgage Rules from an ExpertRobert D. Bordett CFP, CDFA
Collaborative Practice
and Mediation Services
bob@u2agree.com
888 U2AGREE (888.822.4733)

Views: 18

Comment

You need to be a member of Peaceful Divorce to add comments!

Join Peaceful Divorce

Become an affiliate of the Happily Divorced! book and audio program! Let Reformed "Killer" Divorce Attorney, Cynthia Tiano, and Dr. Max Vogt, Marriage and Family Psychologist, take you on an adventure into the lives of two families going through the divorce legal system - one doing "legal battle" and the other creating a "peaceful divorce". Learn how to create a Win-Win from their experiences... HappilyDivorced.org


Events

Latest Activity

Robert D. Bordett, CFP, CDFA posted a blog post

What Is a Caucus?

One of the guiding values in mediation and collaborative law is transparency. It comes with the territory when one is trying to establish trust with two different parties. Sometimes an issue may arise that one party may wish not to discuss in front of the other. If they both agree, separate meetings may take place. These meetings are called caucuses.Caucuses can be…See More
Oct 22
Robert D. Bordett, CFP, CDFA posted a blog post

How Important Is the Budget in Divorce Planning?

I think everyone’s least favorite word is BUDGET. Why don’t we want to hear that word? Think about it: We’re asking ourselves to do something we don’t want to do — or worse yet, someone else is asking us to do it. While we might not like them, having a budget does help. In divorce planning — whether you are going to litigation,…See More
Sep 18
Robert D. Bordett, CFP, CDFA posted a blog post

21st Century Parenting Plans

I remember when the default custody arrangement had one parent as the custodial parent, and the other parent was known as the “Disneyland parent.” They had their children every other weekend, and maybe once during the week for dinner. Today it is more common to see joint parenting time consist of one week on, and one week off or “two-two-five-five” time,…See More
Aug 15
Robert D. Bordett, CFP, CDFA posted a blog post

Including a Financial Professional in Your Mediation

Very often, couples who are divorcing amicably, or who have straightforward financial situations, will forgo meeting with a financial professional while they go through mediation. Though this may seem logical on its face, “going it alone” may result in unnecessary hardship and inaccurate calculations.  It is easy to simply look at a tax table today and say “I am going…See More
Jul 30
Robert D. Bordett, CFP, CDFA posted a blog post

What About the House?

Going through divorce means dealing with hundreds of details, some more important than others. One detail that merits extra contemplation is how to deal with the marital home.Does one spouse want to keep it because the children still live there? You don't want to disrupt their lives any more than is already happening. What if the children are grown? Do you still need that much of a house?Here are the three most common means of dealing with the house in divorce:Selling the house and dividing the…See More
Apr 24

Badge

Loading…

About

© 2019   Created by Cynthia Tiano, Esq..   Powered by

Badges  |  Report an Issue  |  Terms of Service