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Tax Deduction Consulting: Alimony Barre VT

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.

H&R Block
(802) 479-9100
TWIN CENTER PLAZA SHOPPING CENTER 1284 RTE 302
BERLIN, VT

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Alpha Omega Tax And Investment
(802) 878-6155
1 Market Pl Unit 22
Essex Junction, VT
 
H&R Block
(802) 388-3190
260 Court ST
Middlebury, VT
 
H&R Block
(802) 479-9100
TWIN CENTER PLAZA SHOPPING CENTER 1284 RTE 302
BERLIN, VT

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H&R Block Inside St Albans Commons
(802) 524-3140
178 SWANTON RD
SAINT ALBANS, VT

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Jacob Philip H Tax And Business Services
(802) 862-8889
12 Perrotta Pl
Burlington, VT
 
Lachance Susan CPA PC
(802) 878-7677
45 Logwood Cir
Essex Junction, VT
 
Independent Tax Service Inc
(802) 863-2271
Chace Ml
Burlington, VT
 
H&R Block
(802) 442-3100
222 NORTH ST
BENNINGTON, VT

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Associates In Accounting
(802) 878-9619
6 Pinecrest Dr
Essex Junction, VT
 
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Tax Deduction Consulting: Alimony

Alimony Tax Deduction

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.

Alimony Tax Deduction

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:

  • You and your spouse or former spouse do not file a joint return with each other,
  • You pay in cash (including checks or money orders),
  • The divorce or separation instrument does not say that the payment is not alimony,
  • 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,
  • You have no liability to make any payment (in cash or property) after the death of your spouse or former spouse; and
  • 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 1040A 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 p...

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