North Carolina Divorce Lawyers Blog

Distinctive Representation in Sophisticated Family Law Matters
CONTACT US TODAY
Published on:

By

For spouses and ex-spouses facing economic hardship and seeking equitable relief from joint and several tax liability, filing a request for relief under federal law may be an option. The Internal Revenue Code (I.R.C.) provides an exception to the usual rule that spouses are liable for each other’s tax debt and liabilities, but filers must provide convincing evidence that they are facing an economic hardship if they choose that route for relief.

Thomas v. Commissioner of Internal Revenue

In the case of Thomas v. Commissioner of Internal Revenue, Thomas requested relief from underpayments for three years of tax returns based on her assertion that she was facing an economic hardship. Thomas sought liability relief for tax underpayments discovered by the Internal Revenue Service (IRS) for tax years 2012 through 2014, but Commissioner denied the request. When the issue went before the United States Tax Court, the Court denied Thomas’ request for equitable relief based on economic hardship under Internal Revenue Code Section 6015(f) because she had significant assets and did not prove hardship based on her income.

Continue reading →
Published on:

By

Which filing status is the best option for you on your federal income tax return this year? More than one may apply, such as deciding with your spouse whether to file jointly or separately, but if you plan on filing as head of household, you must be sure you meet the requirements. Continue reading →

Published on:

By

Members of some religious groups can submit a request to be exempt from the Social Security tax, but this choice may limit the tax credits you can claim on your federal return. For example, in order to claim a child tax credit, your child must have a Social Security number. A child who has an individual taxpayer identification number (ITIN) will not qualify. Continue reading →

Published on:

By

When spouses in North Carolina divorce, retirement funds and pension benefits are among the many assets that may be divided between the parties. If you were awarded a portion of your ex-spouse’s pension benefits, the question of when you can receive your payments often has a complicated answer. Often a Qualified Domestic Relations Order (QDRO) will be required to divide retirement benefits, and the standards for QDROs are set by a federal law known as ERISA, or the Employee Retirement Income Security Act. Continue reading →

Published on:

By

The income of each spouse is the most significant factor when calculating alimony obligations, but there are many factors that can complicate spousal support figures. Continue reading →

Published on:

By

Spring break is an opportunity to spend quality time with your kids as they enjoy a break from the grind of school. Some families plan vacations or extravagant activities, but for those going through a custody dispute, finding fun things to do can be tricky. From monetary concerns to temporary travel restrictions, you may need to get a bit creative with the activities you plan this year. The good news is we’ve created this list of some great spring break ideas as you go through a custody dispute to make this holiday one of the best ones yet. Continue reading →

Published on:

By

March is Women’s History Month, a time to celebrate the achievements of the countless women who have shaped the course of history.  In the legal world, the Supreme Court is the pinnacle of the judiciary, and the six women who have served as Supreme Court Justices have played a major part in the Court’s evolution.  As we celebrate Women’s History Month, let’s take a moment to honor their legacies and celebrate their invaluable contributions to the Court. Continue reading →

Published on:

By

Equitable distribution in divorce proceedings sometimes includes provisions that one spouse shall keep property in exchange for a lump sum payment to the other spouse. The payor spouse may want to deduct these payments from their taxes, especially when they total large amounts. While alimony payments are generally tax-deductible, not all payments made from one ex-spouse to another are considered alimony for tax purposes. Continue reading →

Published on:

By

Tax season for the 2024 tax year will come to a close for most people in the next month. Filers who make regular support payments to ex-spouses or children may wonder whether these payments are deductible on their federal taxes. Alimony is typically deductible while child support is not, but the process can be complicated, as the case of Rojas v. Commissioner shows. Continue reading →

Published on:

By

For unmarried parents, deciding which parent claims the child on their taxes is a common discussion point around the beginning of each year. Some divorce decrees or custody orders include stipulations for which parent can claim the child, but this is not always the case. If you do not have a court-ordered agreement, determining who qualifies for the earned income tax credit is crucial to ensure compliance with federal law. Continue reading →