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Tax Deduction Consulting: Alimony Mandan ND

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.

Liberty Tax Service
(866) 871-1040
500 W Main St
Mandan, ND

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Liberty Tax Service
(866) 871-1040
118 14th St W
Williston, ND

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Liberty Tax Service
(866) 871-1040
1173 3rd Ave W # 19
Dickinson, ND

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Liberty Tax Service
(866) 871-1040
3005 13th Ave S
Fargo, ND

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Petrick & Youngs Tax Svc Inc
(701) 852-6274
624 31st Ave SW
Minot, ND

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H&R Block
(701) 250-0960
2717 ROCK ISLAND PL
BISMARCK, ND

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Liberty Tax Service
(866) 871-1040
113 Main Ave E
West Fargo, ND

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H&R Block Inside Times Square West
(701) 282-4570
5050 13TH AVE S
FARGO, ND

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Liberty Tax Service
(866) 871-1040
312 University Dr N
Fargo, ND

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Accounting 4 Success
(701) 371-0419
3320 Westrac Drive
Fargo, ND
 
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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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