Tax Deduction for Alimony Payments? - Yes!

Over 50% of marriages end in divorcement in the United States. Many divorcement edicts include commissariat for the payment of alimony. The Internal Revenue Service takes the place that such as payments represent a word form of income and make an maintenance tax tax deduction for the individual making payments.

According to the IRS, maintenance payments are taxable to the receiver in the twelvemonth received. In turn, the individual paying the maintenance can claim a tax deduction for the payments if the following diagnostic tests are met:

1. You and your partner or former partner make not register a joint tax return with each other,

2. You pay in cash (including checks or money orders),

3. The divorcement or separation instrument makes not state that the payment is not alimony,

4. If legally separated under a edict of divorcement or separate maintenance, you and your former partner are not members of the same household when you do the payment,

5. You have got no liability to do any payment (in cash or property) after the death of your partner or former spouse; and

6. Your payment is not treated as kid support.

If you are receiving or paying alimony, you must utilize Form 1040 for your personal taxes. Regardless of income levels, tax deductions or miscellaneous tax issues, you cannot usage Form 104A or Form 1040EZ.

In preparing your tax return, the individual receiving maintenance will report the information on line 11 of Form 1040. That individual must also supply their societal security number to their former partner or human face a mulct of $50. The individual paying the maintenance can claim the tax deduction on line 34a of Form 1040.