21 Main Street · Hackensack, NJ · 07601

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Bergen County / Hackensack
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21 Main Street

Hackensack, NJ 07601

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Divorce and Dependent Child Benefit for 2018 Taxes in Bergen County NJ

Do you remember that last year (in 2017) Congress passed the largest piece of tax reform legislation in more than three decades?

For couples who are separating or divorcing AND who have either high- or low-value assets, the changes are likely to affect your returns for tax year 2018 (the one you’ll file in 2019). If you are divorcing, you may want to know: “Who gets to claim the Dependent Child Benefit?” Ask the Family Lawyers at Townsend, Tomaio & Newmark. (The answer is “Nobody!!”; they can explain why.)

For questions about divorce and filing tax returns in Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee contact our family lawyers at Townsend, Tomaio & Newmark. We have guided clients on hundreds of diverse property and financial issues, both relatively simple and complex. We can help you. 201-285-5985

Family Taxes after Divorce: Who gets the Dependent Child Exemption & Child Tax Credit
Family Taxes after Divorce: Who gets the Dependent Child Exemption & Child Tax Credit

We’ll tell you the ending of this tax story ends first.  Essentially, the child deduction benefit that divorced parents often fight over in equitable distribution divorces is eliminated. In this article, we’ll elaborate more on this and cover a few other ways that last year’s tax reform can affect your 2018 taxes that you’ll be filing in 2019, and even possibly your co-parenting agreement. In addition, we’ll give you the highlights on:

• Lower Tax Rates and Changed Income Ranges
• Tax Relief for Individuals and Families
• Eliminations or Reductions in Deductions

Divorce attorneys at Townsend, Tomaio & Newmark have a thorough & up-to-date understanding of divorce, custody issues, the new lower tax rates and changed income ranges

The new tax laws continue to have seven tax brackets, but now the percents and thresholds are different. Let the attorneys at Townsend, Tomaio and Newmark explain how the tax reform will be good for you. In the meantime, we’ve summarized the technical information shared by Turbo Tax:

Increased standard deduction

File your income taxes smartly after divorce
File your income taxes smartly after divorce

A major change is that the standard deduction amount is almost doubled for all filers. Single taxpayers will see their standard deductions jump from last year’s (2017) $6,350 to $12,000 for 2018 taxes (the ones you file in 2019). Married couples filing jointly can expect to see an increase from $12,700 last year to $24,000 for 2018 taxes. It is expected that these increases will eliminate the need to itemize for many people.

Increased Child Tax Credit

The good news in New Jersey doesn’t stop there! Paramus NJ family lawyers can explain these 4 benefits:

• The Child Tax Credit is now double from the previous $1,000 per child to $2,000 for your 2018 tax return.
• Next, the refundable amount allowed is now $1,400 ($300 more since last year).
• The new laws allow for a non-refundable credit of $500 for dependents (other than children) which will give a little break for people who are caring for older parents or people who do not qualify as dependent children.
• Lastly, the income threshold at which these benefits phase out is raised from $110,000 for a married couple to $400,000. More people can qualify!

Ridgewood family lawyers discuss elimination or reduction of some deductions

We hope that this good news helps you to prepare your return.  Here are a couple more changes to be aware of:

State and local taxes/Home mortgages:

There is a limit of $10,000 for the total amount of state and local property, income, and sales taxes that can be deducted. (Previously, these taxes have generally been fully tax deductible without limits.)
Likewise, under the new tax reforms, there is a limit to the amount of mortgage indebtedness ($750,000, down from $1,000,000 previously) on which interest can be deducted for new home purchases.

Health care:

There are two things here:

  • First, there is no longer a tax penalty for not having health insurance after December 31, 2018.
  • Second, more medical expenses can be deducted. Essentially, there is a lower floor above which out-of-pocket medical expenses can be deducted. In other words, the current law floor of 10% (for 2017 tax year) is lowered to 7.5% in tax year 2018. This means that you can deduct medical expenses that are more than 7.5% of your adjusted gross income.

Get your maximum refund: Contact Bergen County Family Lawyers to explain new laws & good news about the Standard Deduction & Child Tax Credit

Prepare your taxes correctly for the maximum refund
Get the maximum refund

The family law and tax attorneys of Townsend, Tomaio & Newmark have broad experience guiding clients through the many divorce settlement issues in Bergen County, Ridgewood, Hackensack, Paramus, Fort Lee, Teaneck, and across all of Northern New Jersey. Our legal team believes in taking the time to understand your family’s circumstances and concerns. If you want top quality legal solutions and to be kept informed and involved during the divorce process, we are the law firm for you.

To learn more about how the 2017 Tax Reform might affect you and how the child credit can be shared, please contact us online or through our Hackensack, NJ office by calling 201-285-5985 today for a free and confidential consultation.

Cohabitation After Divorce Can Affect Alimony In Bergen County NJ

Divorce and Family Lawyers with Offices serving clients in Hackensack, Ridgewood, Paramus, Teaneck and Fort Lee. Call today for a fre consultation 201-285-5985 At Townsend, Tomaio & Newmark we have assisted thousands of couples navigate divorce or post-divorce situations like cohabitation.  We will help you consider the implications for these decisions, including effects on other areas… Continue Reading

Bergen County Divorce and Equitable Property Division

Probably the two areas of divorce that trigger long-lasting conflicts for separating spouses are children and money. Too often they are areas of continuing stress, even after the divorce is finalized. This article will focus on the second (money) and how property assets and liabilities are divided. First, we’ll clarify the concept of “equitable” divisions… Continue Reading

Court Issues Heartbreaking Ruling in Union County “Baby J” Case

Few things inspire as much emotion in the family law courts as child custody issues.  Whether it be because of divorce, or in the case of “Baby J”(as referred to by the courts), adoption, this issue is always one that can leave one side or the other heartbroken. Extending love to a child and having… Continue Reading

Why Divorce is Good for Your Children

While there are many reasons and avenues for saving a marriage, but the worst and most dangerous of these reasons is “do it for the kids”. Of course, any parent would be worried about how a divorce would affect their children, but in reality divorce is not what is emotionally harmful to children, rather it… Continue Reading

What is a No-Fault Divorce in Bergen County?

Though New Jersey has one of the lowest divorce rates in the nation sadly, even here, not all marriages stand the test of time.  Many things can lead to divorce; from infidelity to domestic violence.  However in some cases a “no fault” divorce can be petitioned to the family courts. In such cases the person… Continue Reading

Post Addiction Recovery Lawyers Bergen County NJ: Parenting Time, the Law, the Courts, and You

Addiction has many facets and non of them are good.  The suffering caused by addiction is not contained to the addict but extends to their family and friends as well.  It cannot be understated that children of addicted parents can suffer profound lifelong psychological trauma.  Addiction and substance abuse is one of the primary causes… Continue Reading

If I am Not Married, Can I Still Get Child Custody and Child Support?

Though most of us may have been raised in a “traditional” family, these days many parents are deciding to remain unmarried but still raising their children together.  Much like in the case of divorce, in order to have a smooth relationship it is best for both parents to come to an agreement about such important… Continue Reading

Do I Need a Lawyer during Bergen County Mediation?

One of the most common questions asked of our Bergen County divorce and mediation attorneys is whether or not a person going through a divorce mediation should hire independent legal counsel. As with the answer to most family law questions, the answer to this question depends greatly upon the specific situation. There are some divorce… Continue Reading

Annulments vs. Divorce in New Jersey

 Annulments have the dubious honor of being one of the most well known, but most misunderstood legal terms when it comes to divorce and family law in New Jersey. Unlike divorce, annulments may only be granted based on wrongdoing, illegal actions, or other circumstances which cause a marriage to be illegitimate. There are also key differences between the legal rights… Continue Reading

Townsend, Tomaio & Newmark

New Jersey Family Law, Matrimonial & Divorce Attorneys

Bergen County / Hackensack Office

21 Main Street

Hackensack, NJ 07601

Morris County / Morristown Office

65 Madison Avenue Suite 420

Morristown, NJ 07960

Representing clients throughout Bergen County and surrounding areas including: Allendale, Alpine, Bergenfield, Bogota, Carlstadt, Cliffside Park, Closter, Cresskill, Demarest, Dumont, East Rutherford, Edgewater, Elmwood Park, Emerson, Englewood, Englewood Cliffs, Fair Lawn, Fairview, Fort Lee, Franklin Lakes, Garfield, Glen Rock, Hackensack, Harrington Park, Hasbrouck Heights, Haworth, Hillsdale, Ho-Ho-Kus, Leonia, Little Ferry, Lodi, Lyndhurst, Mahwah, Maywood, Midland Park, Montvale, Moonachie, New Milford, North Arlington, Northvale, Norwood, Oakland, Old Tappan, Oradell, Palisades Park, Paramus, Park Ridge, Ramsey, Ridgefield, Ridgefield Park, Ridgewood, River Edge, River Vale, Rochelle Park, Rockleigh, Rutherford, Saddle Brook, Saddle River, South Hackensack, Teaneck, Tenafly, Teterboro, Upper Saddle River, Waldwick, Wallington, Washington, Westwood, Wood-Ridge, Woodcliff Lake, and Wyckoff.

We Can Help

  • Disclaimer: Contacting our firm via the internet does not create an attorney-client relationship. Please do not send any confidential information through this form.

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