IsabellaG
Employee Tax Expert

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FOR TAX YEAR 2016

 

These payments could be considered alimony, but I would highly recommend showing your divorce decree to a tax professional for an analysis, because these situations can be difficult to determine, and the wording of your decree determines the tax treatment. It's important because whatever you claim as a deduction must be reported by your ex-wife as alimony income, and if the amounts are not the same, the IRS will very likely examine the issue on your return.

Here's a link to the IRS discussion of alimony: https://www.irs.gov/taxtopics/tc452.html

A payment is alimony only if all the following requirements are met:

  • The spouses don't file a joint return with each other;
  • The payment is in cash (including checks or money orders);
  • The payment is to or for a spouse or a former spouse made under a divorce or separation instrument;
  • The divorce or separation instrument doesn't designate the payment as not alimony;
  • The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.);
  • There's no liability to make the payment (in cash or property) after the death of the recipient spouse; and
  • The payment isn't treated as child support or a property settlement.

 

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