If you make court-ordered alimony payments, you can deduct those on your federal income tax return.
That was so for Keith Robert Caldwell, audited repeatedly over alimony payments he made to his ex-wife.
Another concern is that courts order insufficient alimony payments and too often favour men in custody cases.
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Any amounts paid in excess of that required by a written instrument are not considered deductible alimony payments.
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To figure if the rule applies to you, total your alimony payments in each of the three years.
She requested the increased alimony payments to pay her medical and living expenses.
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Divorce lawyers have used information in social-media posts to extract higher alimony payments from indiscreet spouses, experts and lawyers report.
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If your alimony payments decrease or end during the first three calendar years after they begin, you may be subject to the recapture rule.
If income from alimony is a tax concern, you may also want to revisit the balance between child support and alimony payments in your settlement.
The converse is also true which means that, in that third year, your spouse can deduct that part of the alimony payments previously included in income.
It turns out that some folks came up with the idea that they could structure support payments under the decree to disguise non-deductible settlement payments as alimony payments.
In 2007 Ruth requested increased alimony payments directly from petitioner.
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When circumstances change, your alimony payments might change.
If your proposed divorce settlement agreement includes alimony payments, in most cases, you will have to declare those payments as taxable income. (Although not commonly done, alimony can be structured as non-taxable income to the recipient and a non-deductible expense to the payor).
Ivana also got a nice set of alimony and child support payments to keep her going in the future.
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Besides dividends and interest, other sources of unearned income include capital gains, gambling winnings, alimony, Social Security payments, pensions and annuities.
If the payer is in a higher tax bracket than the payee, characterizing payments as alimony can be a win-win, provided the net tax savings are shared.
While the result may seem harsh, we are bound by the provisions of the Internal Revenue Code defining the circumstances in which payments are deductible as alimony under sections 71(b) and 215(a).
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There are rules to prevent payments that are, in essence, child support payments or property settlements from being characterized as alimony.
Income that appears on other schedules or which might not be reported on a form 1099, such as alimony and some rents, may also affect your estimated payments due.
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Under the law of the state of Ohio, spousal support payments terminate on death, which is good enough to preserve alimony treatment.
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