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Is alimony paid to my former spouse tax deductible?
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| Alimony is an amount paid by a person to a spouse or former spouse under a divorce or
separation agreement. Usually, these alimony payments provide support to a spouse or former spouse
with whom you no longer live. Alimony does not include child support payments or property
settlement amounts. Alimony paid is generally tax deductible from gross income
on your tax return in the tax year it
is paid, even if you do not itemize your tax deductions; but there are requirements and exceptions. Your
spouse or former spouse must include alimony in his or her gross taxable income
on his or her tax return in the tax year
received. Different tax rules apply to alimony agreements entered into or modified at
different times. If you are divorced or separated, you may be able to deduct the
alimony or separate maintenance payments that you are required to make to your spouse or
former spouse, or on behalf of that spouse, from your tax return. If the payments are
tax deductible they are
taxable on your former spouse's tax return.
Several tax tests must be met in order for your alimony payments to be
tax deductible, as
follows:
 | The alimony must be paid under a decree of divorce or legal separation agreement,
written separation agreement, or a decree of support. Voluntary payments are not
tax deductible to you or taxable on your spouse's
tax return; |
| The agreement must provide for cash payments. For rules regarding minimum payout periods
and amounts see IRS tax Publication 504,
Divorced or Separated Individuals; |
| Payments for child support, and any amount of the "alimony" paid for child
support, are disqualified from being tax deductible; |
| You and your former spouse may not live in the same household (there are certain
exceptions); and |
| Your liability to pay the alimony must terminate upon the death of your former spouse. |
Partial payments that include both alimony and child support are allocated first to
non tax deductible child support.
You may state in your divorce decree that alimony is neither
tax deductible nor
taxable to your former spouse. The statement disqualifies the alimony
payments from being tax deductible.
Use Line 31a of IRS tax
Form 1040,
to claim your tax deduction for alimony. Because alimony is tax deductible "above the
line" you can claim the tax deduction even if you do not itemize your deductions. You are
required to enter the Social Security number of your former spouse. If you don't your
tax deduction can be disallowed and the IRS may require you to pay a $50 tax
penalty.
Your former spouse should report any taxable alimony received on
Line 11 of
IRS tax Form 1040.
You must furnish your former spouse with your Social Security number.
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Related
tax information about Alimony |
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Legal Fees
Itemized
Tax Deductions |
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IRS publications about Alimony:
For additional information, refer to Tax
Topic 452, Alimony Paid (this topic covers alimony under decrees or
agreements after 1984), or IRS Publication
504, Divorced or Separated Individuals. Also see
IRS Publication 17,
Your Federal Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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