Tax Day 2020 may seem like a long way off now, but it’ll be here before you know it. If you’ve recently divorced, it’s important you understand the implications of this decision on your tax bill and tax refund. No two divorces are exactly alike, but there are three things you can do to prevent fines, penalties or other unwanted surprises. Keep reading to learn more.
1.) Gather your paperwork. Are you used to your ex filing your tax forms? Maybe you’ve worked with an accountant in the past? As a single person, it’s your job to make sure everything’s in order. If you work a regular 9-5, this is pretty easy; your employer sends a W-2 at the end of every year. However, if you freelance or work as an independent contractor, you’ll need to gather a tax form from each of your employers. Don’t wait until April, either. Start gathering this information now.
2.) Hire a CPA. Modern tax forms can be incredibly confusing. Unless you love crunching numbers, it’s recommended you work with a certified public accountant. Not only does working with a CPA save you time and energy, but it’s also one of the easiest ways to take advantage of tax breaks and refunds you might not even know about. If you work with a CPA, you can also set up an IRS payment plan or better negotiate large amounts of tax debt.
3.) Adhere to all deadlines. After a divorce, it’s easy to feel overwhelmed and generally exhausted. Even though it’s tempting to put off deadlines or large tax payments, doing so increases your risk of fines or penalties. You don’t want to neglect the IRS. If you ignore your responsibilities it could mean garnished wages or liens on your property. Don’t risk it. Adhere to deadlines, and if you can’t pay in full, call the IRS to work something out. It’s far better to communicate than it is to hide.