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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 userCPA Answer:
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.
Alimony and Child support - Partial payment
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
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.
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.
What is an Alimony Trust?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
An Alimony trust is a formal trust arrangement where the beneficiary of the trust is the ex-spouse entitled to alimony payments.
The settler or person who contributes property to the trust is the ex-spouse obligated to make the alimony payments.
The taxpayer may establish a post death "testamentary" trust or a living "inter vivos" trust to provide for the alimony payments required by a divorce decree or an agreement between the parties.
The settler or person who contributes property to the trust is the ex-spouse obligated to make the alimony payments.
The taxpayer may establish a post death "testamentary" trust or a living "inter vivos" trust to provide for the alimony payments required by a divorce decree or an agreement between the parties.
When can a child decide which parent he or she will live with and whether they will visit the other parent?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
Children have the legal right to make their own choices at age 18.
How can I claim Innocent Spouse Relief?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
You must file Form 8857 to claim innocent spouse relief. This must be filed within two years from the date the IRS collection division advised you of a tax liability for the joint return filed by you and your former spouse.
Is Form 8379 the form I use for Injured Spouse relief to get my portion of a joint returns refund ?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
Yes. Form 8379 is the form you can use for Injured Spouse relief to get your portion of a joint tax returns refund. You are an injured spouse if all or part of your share of the overpayment shown on your joint IRS Form 1040 was or is expected to be applied against your spouse’s past due child support or spousal support payments of Federal debts such as student loans. You can file IRS Form 8379 if all 3 of the following conditions are met. You are not required to pay the past due amount. You received and reported income such as wages, taxable interest etc. on a joint return or your main home was in a community property state other than Arizona. (Community property states are CA,ID,LA,NE,NM,TX,WA and WI). You made and reported payments such as Federal income tax withheld from your wages or estimated tax payments or you claimed an earned income credit or other refundable credit on a joint return.
When I remarry, will I lose the survivor benefits I receive from Social Security ?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
If you are receiving survivor Social Security benefits because your spouse has died, you will not lose the survivor benefits if you remarry as long as you are age 60 or older. If you remarry, you might see your monthly Social Security check increase because you may qualify for higher benefits based on your new spouse's earnings history. You have an option to choose the higher of the two amounts. If you have children who are also receiving benefits, their status will be unaffected by your remarriage.
Are funeral expenses deductible on my personal income tax return?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
NO. Funeral expenses, including the funeral, burial or cremation costs, are deductible on the decedent's federal estate tax return, Form 706.
I am filing as a qualifying widow with a dependent child, What is the gross income amount to determine if I must file a tax return?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
For the current year, If your filing status is qualifying widow with a dependent child and you are under 65 then your gross income must be at least $16,100. If you are 65 or older than your gross income must be at least $17,320. Gross income does not include social security benefits.
How do I file my current year’s tax return if my spouse passed away during the year?
Asked Tuesday, January 10, 2012 by an anonymous userCPA Answer:
You should file a "joint" tax return and include the deceased income earned and applicable deductions prior to your spouse's death. A joint return is filed by you and the executor or administrator. Do not include income earned after the date of death. This income is considered "income in respect of a decedent" and is taxed to the Estate or beneficiary receiving the income in the year of the receipt. The income must be reported by the Estate (if more than $600) on Form 1041. Speak to your local CPA about the personal and Estate tax returns that you need to file.