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Hopefully, everyone by now has filed their 2017 taxes. Or at the very least filed for an extension.  Unfortunately for 2018 that’s not the end of the story.  The next step should be to review your 2018 withholdings.  Withholdings are something that should be reviewed periodically to ensure that you are not withholding too much or too little from your paycheck.  Neither is generally a good thing.  As family law attorneys we are keenly aware of the importance of withholdings to our clients’ bottom line.  When parties get divorced withholdings should always be reviewed and most often changed as your filing status is changing.

Now the Federal Government has given us a new reason to review withholdings – the Tax Cuts and Jobs Act which was passed in 2017. The new law changes among other items: tax rates, tax brackets, deductions and exemptions.  Whether you support or oppose the new law there is little doubt that it’s going to affect your taxes.

Of particular significance to divorced parents is the removal of personal exemptions from the tax code. Prior to the new tax law the issue of who could claim the children was often fiercely negotiated.  The parent who was permitted to claim a child in any given year also received an exemption for that child.  Typically, the right to claim a child on taxes was alternated between the parents from year to year.  Now there is no exemption to receive so who claims the child may matter less.  Or it may matter more because the child tax credit has been expanded.

The best way to review your withholdings and your tax returns would be to speak to your tax professional. However, we at Iandoli & Edens, LLC will keep monitoring how the revised tax code will affect our clients and keeping you updated.

If you have any questions regarding your separation, divorce or custody we are available to discuss your concerns with you, please call our firm at 908-879-9499.