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Tax Deduction Consulting: Alimony Hayden ID

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.

Brian Burks, MBA
5660 East Franklin Rd. Suite #130
Nampa, ID
Company
Title: Managing Partner
Company: Burks Wealth Management
Type
Investment Advisor Rep: Yes
Registered Investor: Yes
Education
U of Idaho/B.S. - Marketing
Boise State University - MBA
Years Experience
Years Experience: 15
Service
Life Settlements,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Annuities,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Hourly Financial Planning Engagements,401k Rollover From Employer,Income for Life/ Preserve Principal,Life Insurance,Investment & Portfolio Management,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Accumulation Planning,Individual Income

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A A Tax & Accounting Llc
(208) 375-1462
5123 Emerald St
Boise, ID
 
H&R Block
(208) 934-9203
342 MAIN ST 3
GOODING, ID

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Liberty Tax Service
(866) 871-1040
10804 W Fairview Ave # 100
Boise, ID

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Comprehensive Tax Service
(208) 322-4649
600 N Curtis Rd Ste 210
Boise, ID
 
Economical Tax Preparation
(208) 345-3426
401 S 9th St
Boise, ID
 
H&R Block
(208) 238-5958
4240 YELLOWSTONE AVE
CHUBBUCK, ID

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H&R Block
(208) 324-2658
115 W MAIN
JEROME, ID

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American Tax Services
(208) 853-5007
6625 N Glenwood St
Boise, ID
 
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(866) 871-1040
1563 Fillmore St # 2e
Twin Falls, ID

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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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