Personal Taxes

In the current year a checkbox on IRS Form 1040 page 2 has been added in place of the special power of attorney form. This will authorize your tax preparer to answer IRS question notices on math errors or missing information.

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.

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 seperation year are recaptured as income if they exceed the "average" payments made in the second post separation year and the third post seperation 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 spouses social security number.

When both alimony and child support are made together in a monthly payment, it is presumed that child support is paid first. If your husband did not pay the full amount in a month or many months, then you need to pick up as income the difference over the child support amount for that month as alimony and income on your tax return. It is reported on IRS Form 1040, page 1.

Talk to Taxpayer Advocate. The Taxpayer Advocate Service is an independent organization within the IRS. They help taxpayers whose problems with the IRS are causing financial difficulties; who have tried but have not been able to resolve their problems with the IRS; and those who believe an IRS system or procedure is not working as it should.. You can call your local advocate, whose number is in your phone book, or via the Internet at Taxpayer Advocate Service – at www.irs.gov/advocate or You can also call 1-877-777-4778 . Call or write to the IRS. Keep records of all of your attempts to contact an agent. Fill out IRS Form 911 if you cannot resolve conflict or find resolution through an IRS agent. File a complaint with the Inspector General if you need to report cases of fraud or corruption by an IRS employee.

Forms and publications can be requested by calling 1-800-829-3676.

The IRS will waive penalties when allowed by law if you can show that you acted reasonably and in good faith or relied on the incorrect advice of an IRS employee. The IRS will also waive interest that is the result of certain errors or delays caused by an IRS employee.

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

Uniform Transfer to Minors and Gift to Minors accounts are custodial accounts set up in a child’s name. There are no income eligibility limits to set up an account. Contributions are not tax deductible.
You may put up to $13,000 a year without any gift tax consequences.
As the custodian you have the choice to invest the money in any investment you choose. The current year tax consequences are that the first $950 of the investment earnings is tax free; the next $950 will be taxed at the child’s tax rate.
Any earnings above $1,900 will be taxed at the parent’s rate until the child is 18 years of age. After 18 the earnings are taxed at the child’s rate. An important item to note with these custodial accounts is that the account belongs to the child.
The child gains full control of the Uniform Gift account at age 18 and gains control of the Uniform Transfer account at age 21. Speak to your local CPA for more information on these custodial accounts.