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Alimony

2018-Alimony Deduction

Asked Thursday, December 20, 2018 by an anonymous user
For any divorce or separation agreement executed after December 31, 2018, or executed before that date but modified after, alimony payments are not deductible by the payor spouse.

If a pre-existing agreement is modified after December 31, 2018, the new rules will only apply if the modification expressly provides that the new law should be applicable.

Correspondingly, the recipient spouse will not have to include the alimony payments received as income.
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Alimony

I collect alimony payments. Can I make an IRA contribution?

Asked Sunday, January 29, 2012 by an anonymous user
Yes. Taxable alimony payments qualify as compensation for purposes of making an IRA contribution. You are subject to the same IRA contribution limitations as one who is working.
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Alimony

The basics of Alimony

Asked Thursday, January 12, 2012 by an anonymous user
Alimony is a legal obligation to provide financial support to one's spouse from the other spouse after marital separation or from the ex-spouse upon divorce.
Alimony must be paid under a decree of divorce or legal separation agreement or decree of support.
Alimony cash payments are deductible if you pay them and reportable as taxable if you receive them.
Noncash property settlements is not alimony.
Divorced and legally separated parties must not live in the same household when payments are made.
Child support payments do not qualify as alimony and are not deductible to the giver and not taxable to the receiver.
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Alimony

Are my Alimony payments deductible even though I still live in the same house as my spouse?

Asked Tuesday, January 10, 2012 by an anonymous user
Generally, alimony payments are not taxable or deductible if you live in the same household as your divorced or legally separated spouse. But, if you are separated under a written agreement, but not legally separated under a decree of divorce or separate maintenance, then you may claim the deduction. Speak to a local CPA about this in greater detail.
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Alimony

Are payments made under an annulment decree deductible?

Asked Tuesday, January 10, 2012 by an anonymous user
Yes. Annulment decree payments qualify as deductible alimony payments. They also would be considered taxable income to the recipient. They should be reported as alimony (adjustment or income) on IRS Form 1040 page 1.
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Alimony

I am divorced , but still live in the same house as my ex-wife because we have two young children . Are the alimony payments I make to her deductible?

Asked Tuesday, January 10, 2012 by an anonymous user
If you live in the same house as your ex-spouse and are legally separated or divorced, you cannot deduct your alimony payments, nor is your ex-wife required to report the alimony as income.
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Alimony

If I choose not to deduct alimony payments, can my ex- spouse not report the income for that year?

Asked Tuesday, January 10, 2012 by an anonymous user
Yes. By mutual agreement one spouse can forego the deduction for alimony and the other spouse can receive the benefit of not being required to pay taxes on the alimony received.
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Alimony

Is there a minimum payment period for Alimony?

Asked Tuesday, January 10, 2012 by an anonymous user
No. There is no minimum payment period. Recapture of alimony amounts may apply where payments decrease by more than $15,000 within the first three years of the divorce.
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Alimony

Is there a tax problem if I do not pay her Alimony in the third year after our divorce?

Asked Tuesday, January 10, 2012 by an anonymous user
The deductible alimony payments made in the first year or second year may have to be recaptured as income in the third year where the alimony payments within the first 3 years decrease by more than $15,000. Payments made in the second after the separation year are recaptured if the payments exceed the payments in the third post separation year by more than $15,000. Payments made in the first after the separation year are recaptured as income if they exceed the "average" payments made in the second post separation year and the third post separation year by more than $15,000. The recaptured amount is reported on IRS Form 1040 on the line Alimony received with a notation Alimony recapture with the payee spouse’s social security number.
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