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tlolson75
New Member

I am getting a portion of my ex husbands military retirement. per the divorce agreement it is considered a property settlement but I can only enter it as income?

 
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3 Replies
SusanY1
Expert Alumni

I am getting a portion of my ex husbands military retirement. per the divorce agreement it is considered a property settlement but I can only enter it as income?

While military retirement pay is divided as property, it is treated as income for tax purposes.

 

This item is addressed in the FAQs here (the 12th question): DFAS FAQs Former Spouse's Protection Act.

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I am getting a portion of my ex husbands military retirement. per the divorce agreement it is considered a property settlement but I can only enter it as income?

If my ex pays me directly (dfas will not, I am NOT 10/10) WHERE do I put this income I receive on my tax form? My ex is making me put it as alimony, my decree says I do NOT receive alimony, plus my state does NOT tax military retirement pay so if I claim it as alimony, I am not only listing it incorrectly AND i'm paying state tax and it is NOT state tax, I have no 1099R as proof!

DMarkM1
Expert Alumni

I am getting a portion of my ex husbands military retirement. per the divorce agreement it is considered a property settlement but I can only enter it as income?

I see from your other related post you state, "HE receives the full 1099R, he pays me directly a portion monthly.  (we were divorced in 2004, our decree says he is to pay me monthly plus cola yearly)".  Sounds like you have a document that says he is paying you a portion of "Military Retirement" and that payment appears to meet the criteria to be considered alimony for tax purposes according to this IRS Topic.  

 

For the federal taxes you would pay taxes if you were getting a 1099-R or alimony.  Since you are not getting a form 1099-R, entering as alimony would be proper.  

 

For the state question, it appears the best option without a form 1099-R is to enter the amount in the AZ state interview as "Other Subtraction" and in the description state "Military Retirement Pay-Alimony" and put in the amount.  In the AZ interview you will find a page titled "Other Subtraction".  

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