So I seperated from my husband and we are almost divorced. He has always done the finances and taxes. I know I'm going to have to file myself this year. My question is, what should I be recording and saving now to use next year when I do the paperwork? I don't work, except for a small Etsy shop on the side. I stay at home with my two girls and homeschool them. I have been borrowing money from my parents until the custody case is set which is when I will start getting child support. I'm terrified of owing thousands of dollars next spring and I don't know anything about taxes.
Any book or website ideas to educate me?
Any advice from someone who has been here before?
10% on taxable income from $0 to $8,925, plus
15% on taxable income over $8,925 to $36,250, plus
Why don't you open separate savings account and just transfer the amount needed to tax for it each time you get money. That would work. You will probably end up with extra deductions and get to keep some of it too.
I would start a spreadsheet and each time you get paid add an entry to it and file your paperwork in a tax folder (I have one just titled current taxes I use each year). That way you are not trying to recreate everything at the end of the year.
Also save anything you might be able to get a deduction on. In Canada we even get a child tax rebate on activities for kids.
Child support is not taxable, alimony is. You will be head of the household but will need to find out is taking deduction for kids. If you are only getting child support and have no other income, you might now owe anything, You should still plan to file, because you might be eligible for the earned income tax credit. My first year after divorce I got three times as much back from that credit as I paid in taxes total because I was so low income. Can you give an idea of what your income is and where it is coming from?
Also, if you are lowish income, you can use turbo tax or other on line tax services to file the federal tax for free. You might be able to also put your numbers through to get an idea of what you might owe or get back. I think H&R Block had that service on their website.
me, i have btdt! It really isn't that difficult. Xh always did the taxes once we were married. Alimony does count as income, but it is other income and you cannot get EIC on it Started getting child support and alimony august of last year and didn't owe anything. Not sure about this year as my alimony is going to be about 18K, but I have dd as a dependent so i should even things out. Ex claims ds, that is how it is using done if you have joint custody. I just used turbo tax last year.