Exspouse and military retirement pay

[Irene2805]

If the modification did not expressly state that the repeal of the deduction for alimony payments applies to the modification, you are still grandfathered in. You can deduct the payments as alimony.  [IRS Topic No. 452 Alimony and Separate Maintenance]

@peltierm32

[43GPW]

My divorce decree is dated Dec 1995.  In regards to military retirement distribution my decree says " Pursuant to the above formula, Plaintiff's portion of Defendant's retirement would equal $938.00 per month."  That is all it says and that is the only mention of the division of my military retirement pay in the document.  DFAS deducts that amount from my monthly retirement pay direct deposit and sends it to my ex-spouse.  I don't see that money but pay the income taxes on that $938 per month.   Can the $938 be deducted as alimony or some other line item?

[DMarkM1]

Normally you are not paying the taxes on those payments.  Your 1099R would only include the amount you received, while you ex-spouse gets a 1099R showing the amount they receive.  You should contact DFAS to confirm.  

Here is a link with DFAS contact information in the upper left column.  Also note the answer to the question, "Are USFSPA retired pay as property payments taxable to the former spouse?"

[Winterstorm21]

I recieve a pension of my 2007 divorce under 20/20/20 rule, ex-spouse military pension as direct garnishment from DFAS, & recieve a 1099R ,I've had my federal taxes withheld from it. I recieved a separate alimony for 24 mionths then it ended.  I recently moved to a state with state tax. AL.  Is my part of pension I recieve, also subject to state taxes as well? I have not been able clarify, any clear guidance, concerning this online, whether the pension I recieve is liable to state taxes as well? IWe were divorced in Texas, Im not sure if is was considered property settlement or alimony. I want to be confident II have the correct tax advice now & time to make any correction, so I might sleep soundly, instead of suffering consequences later.

[mldrennan76]

Shouldn't this be added after the second sentence in ToddL's reply:  If DFAS pays you directly and sends you a Form 1099-R, you report that amount on your tax return (in Retirement Plans > Pension Plans (1099-R).   When DFAS pays you directly, he cannot deduct the payments as alimony because they are not included in the "Gross Distribution" shown on his 1099-R.

Thoughts??

[Vanessa A]

For divorce decrees finalized after 2018, alimony is no longer deductible.

If the divorce decree was finalized prior to then, and this payment is coming as a result, you still would not be able to deduct it as alimony as you are not including the disbursement that is being paid out in your income.  You would be getting an extra deduction without the matching income. 

[mldrennan76]

Vanessa A, agree with you.  Thanks!

[brock275]

That last sentence is important as written.  I have been searching all over and find varying answers.  If the "alimony" is not on my 1099-R, I can't claim it?   I retired from the military in 2007.

[MarilynG1]

After you report the income on your 1099-R, then you claim the Alimony Deduction to offset the income on your return. 

If the alimony you paid is NOT included in your 1099-R distribution amount (your ex-spouse receives their own 1099-R), then you can't take the deduction.  You should contact the payer if you're not sure about this.  If you paid alimony yourself, here's the steps to enter it in TurboTax:

• Click on the Federal Taxes tab > Deductions & Credits sub-tab
• Scroll down until you see Other Deductions and Credits 
• Click Start next to Alimony.
• Proceed through the interview to enter your alimony paid. 

Please see the following FAQ article for additional information Alimony Paid.

[OldSchoolShaver12]

I'm in the same situation for 2021 and I am very interested in a response to this question. I've talked with a local tax preparer and searched the internet but cannot get an answer. Essentially, my ex spouse received the full benefit for 12 months without having to be pay taxes on the amount received. Divorce was final in 2020 and DFAS is just now starting to pay her directly in March 2022. 

[DMarkM1]

Please clarify.  How did she get the payment?  For example, you received it all from DFAS and then you paid her? or some other arrangement?  What authority/document gave the directions for the method of payment?  

[OldSchoolShaver12]

I paid her directly per Mediation Agreement and later Divorce Decree. Starting March 1st, DFAS will be deducting appropriate taxes and paying her directly and issuing her own 1099 for 2022. Per my 1099 for 2021 I received the full retirement pension and paid her separately 40%. Thank you in advance for anyone who might have a good answer on this. 

[MarilynG1]

Since payment to your ex-spouse from your Retirement account is usually not considered Alimony, but a 'property settlement', enter your 1099-R as issued in TurboTax.

To subtract the amount you paid your ex-spouse from your income, follow these steps:

1. Federal Taxes
2. Wages & Income
3. Less Common Income
4. Miscellaneous Income
5. Start
6. Other Reportable Income
7. Start
8. Other Taxable Income
9. Description = “QDRO Distribution to SSN xxx-xx-xxxx."
10. Amount = $xxx (enter as a negative number)

If your divorce decree specifically states that these payments are Alimony, click this link for steps to Report Alimony Payments. 

[OldSchoolShaver12]

Thanks so much for this very helpful information 

[Oliver7088]

Read your divorce decree for the answer