“Is alimony tax-deductible? The answer may surprise you, especially if you're feeling frustrated over all that lost income.”
It's what every divorced man wonders, as he is driven to much frustration year in and year out, as alimony payments never seem to stop coming. And sure, it's hard to like the idea of forced alimony, since unlike child support that money is not really going towards your extended family or towards your future investment. Let's consider this issue from the point of view of a Daytona attorney.
Doesn't a Guy Deserve a Break?
Yes, alimony judgments are tough and maybe you feel that it isn't fair. Guess what though? Uncle Sam is throwing you a bone, so to speak! Alimony IS actually income for the recipient and is a deduction for you, provided a few bases are covered. So by all means, report every last penny of alimony (or separate maintenance, as it is sometimes defined).
Yes, this is the final word on the matter as stated by the Internal Revenue Service. The only reason why some men think that alimony is not taxable is that they confuse it with child support, which is not reported and not deductible. Otherwise, we'd all be counting diapers as an expense! If you paid alimony, report the final yearly amount on Form 1040 on Line 31. This is NOT the same thing as child support payments, so don't combine totals. (You will get in trouble) The only thing left is your ex's SSN and 31b and the amount on 31a.
Are there any cases in which you are not allowed to count alimony on your taxes? Possibly, which is why you should cross off each item on this checklist just to be sure.
Make sure (with your Daytona attorney) that:
1. You are not filing a joint return with your ex. (It happens, oddly enough)
2. You pay in “cash”, which includes checks and money orders.
3. The court never instructed you to stop counting these payments as alimony.
4. You and your spouse are not living in the same house while separated and awaiting divorce.
5. You are free from liability after the death of your spouse/former spouse.
6. Your alimony payment isn't being treated like child support.
On the subject, what if your ex decides not to report the income you're sending her? In case that's what you're thinking, relax. The IRS is exhaustive when it comes to these things and they will notice a discrepancy in the report you file and the report your ex files. Failure to report income will result in an audit, so you might want to be a gent and warn your ex about this, if you feel it necessary.
For more information on alimony payments, child support and other issues that affect men (whether as payers or recipients) visit Kenny Leigh and associates and consider a father's rights.
By Kenny Leigh
