Tax Deduction For Alimony Payments Yes

Tax Deduction For Alimony Payments Yes



Tax Deduction for Alimony Payments? - Yes!
Over 50% of​ marriages end in​ divorce in​ the​ United States .​
Many divorce decrees include provisions for the​ payment of​ alimony .​
The IRS takes the​ position that such payments constitute a​ form of​ income and create an​ alimony tax deduction for the​ person making payments.
According to​ the​ IRS,​ alimony payments are taxable to​ the​ recipient in​ the​ year received .​
In turn,​ the​ person paying the​ alimony can claim a​ deduction for the​ payments if​ the​ following tests are met:
1 .​
You and your spouse or​ former spouse do not file a​ joint return with each other,​
2 .​
You pay in​ cash (including checks or​ money orders),​
3 .​
The divorce or​ separation instrument does not say that the​ payment is​ not alimony,​
4 .​
If legally separated under a​ decree of​ divorce or​ separate maintenance,​ you​ and your former spouse are not members of​ the​ same household when you​ make the​ payment,​
5 .​
You have no liability to​ make any payment (in cash or​ property) after the​ death of​ your spouse or​ former spouse; and
6 .​
Your payment is​ not treated as​ child support.
If you​ are receiving or​ paying alimony,​ you​ must use Form 1040 for your personal taxes .​
Regardless of​ income levels,​ deductions or​ miscellaneous tax issues,​ you​ cannot use Form 104A or​ Form 1040EZ.
In preparing your tax return,​ the​ person receiving alimony will report the​ information on​ line 11 of​ Form 1040 .​
That person must also provide their social security number to​ their former spouse or​ face a​ fine of​ $50 .​
The person paying the​ alimony can claim the​ deduction on​ line 34a of​ Form 1040.




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