My wife and I are unfortunately getting a divorce
. The situation will be:
1) I make $350k/year; she will have no other income
other than alimony
($5k/month), plus $3500/month in child
2) We have three children, who will reside with her, though we share custody
3) Because of my income
, I'm not eligible for a lot of the student loan interest deductions
This divorce is fortunately amicable, so we're each willing to sign tax
waivers, etc to create the most favorable federal tax
situation for me filing
singly. Which would be the best option:
A) I pay the above alimony and child support and assume both the tax liabilities
for them, as well as claim the children for deduction
purposes (after she signs a waiver allowing me to do so).
B) She claims the children and reports the alimony as taxable income
, in which case I would increase the amount of alimony by her tax liability (so she winds up with a net of $5k/month plus child support), and deduct that from my taxable income.
Any advice would help.