Deductions Alimony – Killer Guidelines From Joe Mastriano, CPA.
Alimony – Tax Deductible
Deductions Alimony – Qualifications
These periodic payments made from husband to wife or from wife to husband are deductible, if one of the following criteria is met:
- The payments are made under a written separation agreement. In this case, the spouses are separated, filing their tax returns separately.
- The alimony payments are made under a court order, decree of divorce, or legal separation.
- The payments are settled under a court order or decree for the spouse’s support or maintenance. The spouses are separated, living apart, and do not file a joint return.
- The payments are made in cash (including checks and money orders).
How To Claim Alimony Payments On Your Tax Return?
In order to claim the deduction, you must fill out Form 1040. In addition, you must provide the social security number of the former spouse receiving the alimony payments . If you fail to add it on your tax return, you are subject to pay a $50 penalty. You may be disqualified from receiving tax deductions on alimony payments.If you are receiving the alimony payments from your former spouse, you must report the full amount as income on your tax return, on your Form 1040. It is required to provide information regarding your spouse’s social security number.Payments for child support or for child support purposes are not tax deductible.For more information about alimony payments – tax detectability and additional tax planning strategies related to this matter, contact us now at 713 774 4467!