Split 1099-R income with ex-spouse

Forum|Forum|6 years ago
February 18, 2020
2 replies
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Ex-spouse received pension payments monthly all of 2019. Jan-May we were married so income is 50/50. June-December the pension plan paid him all as the right paperwork was being processed to split it monthly. Instead, he paid me my 50% portion from his personal checking account.

Now he as a 1099-R with the entire amount and I don't have any 1099-R for my 50%.

1) How does the income get report on his tax form income (match 1099-R, take 50% and not match 1099-R)?

2) How does the income get reported on my tax form income (my 50% although no 1099-R, $0)?

Thanks.

DianeC958

Level 12

1) He would need to report the full amount on his tax return to match the 1099-R he received.

If the amount he paid you is not designated as alimony in your divorce documents he can report it in TurboTax as Less Common Income> Other Reportable Income. In that section he can put in a description and the amount as a negative amount.

2) You can file the income you received as a substitute 1099-R in the Retirement Plans Section of TurboTax

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hokietrax

Level 2

Have reported this (Military Pension Division--not alimony) as a negative in Miscellaneous Income as "other income not already reported on a W-2 or 1099". TT flags the negative number and will not allow an e-file.

If instead this amount is moved to "other reportable income" will TT allow the negative income number to pass?

Or will TT choke on it either way, and I get the pleasure of printing and mailing my return?

Thank you.

Critter

Level 15

You can report it as other income on Sch 1 line 8. Here's how to enter it in TurboTax.

Click the Federal Taxes tab ( Personal in the Home & Business version)
Click Wages & Income. (Personal income in the H & B version)
On the screen "Your 2019 Income Summary," scroll all the way down to the last section, "Less Common Income."
Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
The next screen asks, "Did you receive any other taxable income." Click Yes.
On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
On the next screen click Done.

rjswifty

Level 2

That takes care of the income side. How are the associated taxes handled?

hokietrax

Level 2

Associated taxes for whom? Your question is unclear, but my attempt to answer: for my ex-spouse, receiving the income, it's taxed as income (ex-spouse's responsibility to file correctly), for me it ends up acting as a deduction, it's just entered here as negative income.

hokietrax

Level 2

Whatever amount is reported on a Form 1099-R sent to you is income that is includible on your income tax return. For income tax purposes, you cannot split the Form 1099-R to reduce the amount that is reported on line 4 of your Form 1040.

Separately, if you pay alimony to your ex-spouse (the amount of which is determined by your divorce or separation instrument), whether or not the alimony is deductible on your tax return and includible as income on your ex-spouse's tax return depends on when the divorce or separation instrument was executed or last modified. If the amount of alimony you pay your ex-spouse includes some in proportion to the amount on amount on the Form 1099-R, if the date that the divorce or separation instrument was executed was after December 31, 2018, the alimony is neither deductible by you or includible as income by your ex-spouse. The same applies if the divorce or separation instrument executed by December 31, 2018 but was modified after that date and specifies that this same repeal of the alimony deduction applies.

As I understand it, military pension division is not necessarily alimony, but rather a division of community property, no?