QUESTION
What would be our tax implications in legal separation?
Asked on Oct 25th, 2012 on Divorce - California
More details to this question:
Because of legally separating, I'll receive a 401k pay-out of ~$109,000 in 2013, as well as child & spousal support of ~$3300/month. My spouse's gross income will be ~103,000 in 2013. How can we lower our income tax rate, and which tax status is best for us: Married filing jointly or Married filing separately?
5 ANSWERS
I would suggest you contact your tax advisory to be certain you are receiving accurate information and advice.
Answered on Oct 26th, 2012 at 3:47 PM
Married filing jointly is generally much more favorable than filing separately. You should discuss all of the ramifications with your accountant.
Answered on Oct 26th, 2012 at 3:46 PM
Family Law Attorney serving Temecula, CA
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Landon Rainwater Robinson LLP
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Attorneys are not generally qualified to give tax advise. However, legally, If you are legally separated you cannot file married. The only way you can file married is to be actually married. You need to be consulting an accountant for specific tax information.
Answered on Oct 26th, 2012 at 3:46 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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The money you receive from the 401(k) should be rolled into a separate tax deferred account (a rollover IRA is typical). Doing this makes the transfer non-taxable and not subject to the 10% early withdrawal penalty. Other than that, you should speak with an accountant for tax advise.
Answered on Oct 26th, 2012 at 3:46 PM
Divorce/Family Law Attorney serving Carlsbad, CA
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Anne B. Howard, A Professional Law Corporation
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You should talk to your tax advisory. You will still be married for tax purposes but can file married filing separately Opinion not legal or tax advice.
Answered on Oct 26th, 2012 at 3:46 PM