Fappiano
Returning Member

Alimony

Are payments made directly to an ex spouse for a portion of military retirement pay considered alimony?

Vanessa A
Employee Tax Expert

Retirement tax questions

No.  This would be considered a retirement distribution made in installments. 

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Fappiano
Returning Member

Retirement tax questions

Am I allowed to deduct it from my taxable income, and does she need to report it as earned income?   The divorce was in 1998.

SabrinaD2
Employee Tax Expert

Retirement tax questions

You can deduct alimony paid to a former spouse as long the divorce or separation agreement was executed by December 31, 2018.

 

Alimony payments resulting from agreements executed after that date can no longer be deducted due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017. The same holds true for agreements modified after 2018 if the new version specifically states that the TCJA treatment of nondeductible alimony payments now applies.

To enter your alimony payments:

  1. Open or continue your return.
  2. Navigate to the alimony section:
    1. TurboTax Online/Mobile: Go to alimony paid.
    2. TurboTax Desktop: Select Search Topics. Search for and select alimony paid.
  3. Answer Yes on the Did you pay alimony to a former spouse in 2024? screen and follow the onscreen instructions.

For additional information click here.

Fappiano
Returning Member

Retirement tax questions

Maybe my question isn’t clear.  I know how to add alimony to the form.  The problem is that I am getting conflicting information on whether my situation qualifies to be entered as alimony.

 

my divorce was in 1998

in our division of property she was awarded a percentage of my future military retirement

i started sending her payments directly this year

I was informed during Chat on turbo tax that this is a retirement distribution and that I cannot claim it as alimony

if it qualifies I would like to take the deduction.  What I don’t want to happen is to claim and have it rejected by the IRS.

SabrinaD2
Employee Tax Expert

Retirement tax questions

Based on the additional clarifying information if  payments are part of community property income, including retirement payments, are generally not considered alimony for tax purposes. This means they aren't deductible as alimony. Instead, they are treated as a division of property

 

For more detailed information, you can refer to the IRS guidelines on community property here and here.

 

Please confirm it was part of the division of assets and or community property settlement portion of the divorce.

 

[Edited 02/16/2025 | 4:47 pm PST] @Fappiano

Fappiano
Returning Member

Retirement tax questions

Thank you for the clarification.    It was listed under division of property which also included the home, vehicles and other personal property.