Tax Deduction Requirements for Alimony Payments
Find Out If You Qualify for Tax Deduction
1. You and your spouse or former spouse can not file a joint return with each other,
2. You make alimony payments in cash, which includes checks or money orders,
3. The divorce or separation decree does not state that the payment is not alimony,
4. You and your spouse can not be members of the same household when you make the payments if legally separated under a decree of divorce or separate maintenance.
5. You have no liability to make any payment (in cash or property) after the death of your spouse or former spouse; and
6. Your payment is not treated as child support. Child support is never deductible. If your decree of divorce or separate maintenance provides for alimony and child support, and you pay less than the total required, the payments apply first to child support. Any remaining amount is considered alimony.
7. You can not claim non-cash property settlements, whether in a lump sum or installments as these do not qualify as alimony. Voluntary payments (payments not required by a divorce or separation decree) do not qualify as alimony.
If you are receiving or paying alimony, you must use Form 1040 for your personal taxes. You can not use Form 104A or Form 1040EZ regardless of income levels, deductions or miscellaneous tax issues. The spouse or former spouse receiving alimony will report the information on line 11 of Form 1040 and must report the full amount as income on your Form 1040. The person paying the alimony can claim the deduction on line 34a of Form 1040.
You do not have to itemize deductions to deduct your alimony payments. You must provide the social security number of the spouse or former spouse receiving the payments. If you do not, you may incur a $50 penalty and your deduction may be disallowed.
For more information of alimony requirements (Publication 504, Divorced or Separated Individuals) or other tax information visit http://www.irs.gov.
Published by Marla Melendez
Just a girl with a sense of humor. Hope you enjoy the articles. I write about everything, especially things I find interesting. Don't take anything too seriously; Life is nothing without a sense of humor no... View profile
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- The IRS counts alimony payments received as earned income.
- Non-cash property settlements, whether in a lump sum or installments do not qualify as alimony.
- You and your spouse or former spouse can not file a joint return with each other.