The IRS has once again extended the tax filing and payment deadlines in most parts of California due to destruction caused by landslides, mudslides, and severe storms. Now those Californians have until October 16th to file, as opposed to the previously announced May 15th date.

The IRS has extended the fourth quarter 2022 estimated tax payment deadline to October 16th. The 2023 estimated tax payments due on April 18th, June 15th, and September 15th, as well as the quarterly payroll and excise tax returns due on January 31st, April 30th, and July 31st, have also been delayed until October 16th. No contact or extension paperwork is necessary to take advantage of the extended time. If taxpayers receive penalty notifications within the postponed period, they should contact the number provided for the penalty to be waived.

A divorce or legal separation may affect a person’s taxes in multiple ways, starting with a change in tax filing status. Married taxpayers typically file using either married filing jointly (MFJ) or married filing separately (MFS) status, while most divorced taxpayers file under single or head of household (HoH) status. As a result, recently divorced or legally separated taxpayers may need to adjust their paycheck withholding or estimated tax payments. The IRS Withholding Estimator tool can help with this process.

A divorce agreement or separation decree may also carry a requirement for one former spouse to pay alimony and/or child support.

One of the potentially complicated questions that can arise in a divorce or legal separation is which taxpayer will claim the children as dependents. Generally, it is the custodial parent who may claim a child, but exceptions do exist. If parents share custody equally, they must either come to an agreement on who will claim the child each year, or apply the various “tiebreaker” rules established by the IRS.

Divorces and separations often also involve property transfers. If one spouse transfers property like a car, home or financial account to the other spouse as part of a divorce or separation, there is generally no capital gain or loss, and no federal tax on the transfer. However, it may be necessary to report certain transfers to the IRS as gifts, which in rare cases could trigger federal gift and estate tax.

IRS WITHHOLDING ESTIMATOR: https://www.irs.gov/individuals/tax-withholding-estimator