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My spousal support order changed 1/2 way thru year and only $4k is taxable of the $8k i received. Do i put $4k in the amount or the whole $8?

When i put $8000 in turbo tax and hit the button that says YES, the order changed for taxability, it just takes the whole $8000.  Only $4000 is non taxable by judges order.  Do i put $4ooo?  I don't want them to come back and say i really received $8000 even though only $4 was taxable.
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5 Replies
SusanY1
Expert Alumni

My spousal support order changed 1/2 way thru year and only $4k is taxable of the $8k i received. Do i put $4k in the amount or the whole $8?

When it comes to alimony, you are only required to report the amount received that is taxable to you.   Therefore, you should only enter the $4,000 figure into the TurboTax program.  If the IRS questions your entry later simply reply to their inquiry by providing a copy of your court order showing that only the $4,000 was taxable.   

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My spousal support order changed 1/2 way thru year and only $4k is taxable of the $8k i received. Do i put $4k in the amount or the whole $8?

Thank you for reply. I am confused though. There is a question that asks for the amount. That is where I would put the 4000 

 

the next question asks if there was an order to change the taxabilty. When I say yes, it does not tax that 4000. 

both questions would require me to put in incorrect information to work correctly. 

dmertz
Level 15

My spousal support order changed 1/2 way thru year and only $4k is taxable of the $8k i received. Do i put $4k in the amount or the whole $8?

Make the entry in two parts, the $4,000 received before the modification (taxable income, agreement not modified) and the $4,000 received after the agreement was modified in 2019 (nontaxable, agreement modified).  TurboTax will include only the taxable $4,000 on Schedule 1 line 2a.  (As suggested by SusanY1, you could entirely omit the $4,000 received after the modification since it goes nowhere on your tax return.  You are entering that portion only for your personal records.)

My spousal support order changed 1/2 way thru year and only $4k is taxable of the $8k i received. Do i put $4k in the amount or the whole $8?

So this is the issue I’m seeing. There is no place to put different amounts 

there are 3 questions

 1) total alimony received in 2019

2) date of original agreenevt

3) check if decree was modified after decades 31 to indicate no longer taxable

 

if o put $4000 in question one, do I change my date of original agreement to July 1,  2019 instead of 2014... and the don’t click the text box? 

if I click the text box it doesn’t take into account the taxability changed halfway thru the year and doesn’t tax any of it. 


my original agreement is 2014.  If I put in 4000 and don’t check the box then the taxes are correct?  But I’m not indicating that the agreement changed.  

it seems to be an all or nothing and to make it correct I’m fudging my answers?

dmertz
Level 15

My spousal support order changed 1/2 way thru year and only $4k is taxable of the $8k i received. Do i put $4k in the amount or the whole $8?

To add the second entry, click the  Add another Recipient button on the Here's your alimony received info page.

 

In each case, enter the date of the original agreement.  Marking the box to indicate that the agreement was modified after December 31, 2019 caused the alimony so marked to be excluded from income.

 

You are not fudging you answers.  TurboTax is asking the modification question with respect to each portion separately.  Only the entry without the modification box marked is includible in income.  Because the entry with the modification box marked does not appear anywhere on your filed tax return, there is no need to actually enter it; you are entering it only for your personal records.

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