Comments on: Ask the taxgirl: Is it Alimony?

By: Jeff

Jeff — Thu, 19 Jan 2012 19:23:30 +0000

My ex and I are officially divorced as of July of last year. We entered a certified agreement for alimony into our divorce decree, but after it was finalized, she had a change of heart and verbally changed the agreement. I have finished paying her as per our verbal agreement, but I would like to deduct my payments from my taxes for 2011. Can I do this based on a verbal agreement between us? Does it have to be in writing to be able to deduct alimony?

By: Massachusetts Divorce Law Monitor

Massachusetts Divorce Law Monitor — Fri, 02 Apr 2010 20:47:27 +0000

Topic 6: Tax time and more…

Hi there, April 15th is coming up fast. If you are divorcing, or if you are divorced, your taxes will be different and you will have a number of new items to consider. I just came across a good article……

By: Ask the taxgirl: Spousal Maintenance | taxgirl

Ask the taxgirl: Spousal Maintenance | taxgirl — Tue, 02 Mar 2010 16:38:29 +0000

[...] likely alimony and you have to report that as income on your federal taxes. For more on alimony, check out this prior post which explains the details of qualifying alimony. Those details, including the nature of payments, [...]

By: Kelly

Kelly — Thu, 05 Mar 2009 15:59:08 +0000

I think your CPA is concerned that the support will appear voluntary absent a court order/written agreement and would not be treated as alimony. I would have the same concern.
If you qualify as single under the filing rules, you wouldn’t have to file jointly, irrespective of the alimony issue. I’d first determine your filing status and then tackle the support issue.
For your own protection, I think you should consult with an attorney and figure out what should be memorialized (I’m guessing that a support agreement would be at the top).

By: Michele

Michele — Thu, 05 Mar 2009 14:42:17 +0000

My ex paid me unspecified support for a previous tax year. There was no “separation instrument” though we would both agree to claimingit as alimony. But the CPA said that there has to be a court order. What if you are in agreement? Does there still have to be a legal document of alimony? I am not comfortable with filing joint, because of other issues. Can we create some type of legal document after the fact?

By: Ask the taxgirl: Child Support & Legal Fees | taxgirl

Ask the taxgirl: Child Support & Legal Fees | taxgirl — Wed, 28 Jan 2009 18:36:55 +0000

[...] Nope, sorry. There’s no tax deduction for legal fees for child support – but you may able to deduct the cost of tax advice in connection with a divorce. [...]

By: Kelly

Kelly — Wed, 28 Jan 2009 15:38:00 +0000

True re the Social, though I’m guessing that he has the ex’s spouse since they likely filed together in prior years. If not, there are bigger issues.

As to the income component, absolutely. I decided just to focus on the reader but his ex would certainly have tax consequences (which is why she needs a tax pro, too!).

By: Vinny

Vinny — Wed, 28 Jan 2009 15:32:59 +0000

Your writer also needs his ex’s SSN, otherwise, you can’t take the deduction. And if the ex doesn’t claim the alimony as income on her 1040, she’ll get dinged.

By: Brad

Brad — Wed, 28 Jan 2009 15:26:39 +0000

Great article.

If the payment is called alimony by a court (or settlement agreement) but terminates upon children obtaining the age of majority or another similar condition, it may not be alimony.

By: Robert D Flach

Robert D Flach — Wed, 28 Jan 2009 13:15:37 +0000

Kelly-

I just finished a “battle” with the IRS regarding an alimony deduction that took several years. I finally had to get the local TAXPAYER ADVOCATE office involved – although my request to the TA was initially ignored and I had to write to Nina Olsen directly.

The problem arose because the divorce decree stated “The parties expressly waive past, present and future alimony against one another” and then went on to state “The Husband shall pay to the Wife the sum of $650.00 per month” to cover the cost of her apartment rent and insurance costs.

Poor wording by the lawyer – they parties should have “expressly waived SUPPORT PAYMENTS”. However – “if it walks like a duck and quacks like a duck . . .”

I did win in the end, and monies withheld from several year’s tax refunds were returned to the client.

When I have some free time (after tax season, of course) I may write a post about the situation for THE WANDERING TAX PRO.

BTW – your advice of having a tax pro review the document is excellent, and actually should be done in ALL cases, regardless of the “expertise” of the attorney.

TWTP