@DG47 wrote:
I do have some verbiage in the court order that states, "Plaintiff is liable for all federal and state taxes on the retired pay received from Defendant and those amounts paid by Defendant to Plaintiff are deductible by Defendant and taxable as income to Plaintiff. "
@DG47 Your court order does not determine what is taxable income and what is deductible. Federal tax law determines what is taxable income and what is deductible. That statement in your court order is not enforceable, and the IRS is not bound by it.
@DG47 wrote:
What if I issued her a 1099-Misc or the 1099 for alimony?
There is no 1099 for alimony. And, as you said yesterday, the money you are paying from your retirement is not alimony.
As macuser_22 said yesterday, you should be talking to your attorney about this. The court order was obviously written without proper consideration of federal tax law and the Uniformed Services Former Spouses' Protection Act (USFSPA). (The USFSPA is where the 10-year requirement comes from.) The best solution would be to get the court order revised so that it conforms to the applicable federal laws. TurboTax cannot solve this problem for you, and we here in the community cannot solve the problem for you.
I am not a lawyer, but it seems to me that it would be much simpler to just have you pay alimony in an amount equal to the net amount that your ex would be entitled to from your retirement pay. If you do that, be sure that the agreement takes into account the change in the taxation of alimony under the 2017 tax reform law. In view of the problems with the court order, you should probably get a tax lawyer involved to work together with your divorce lawyer.
