Split 1099-R income with ex-spouse

[rjswifty]

I understand. However, if I reduce my income on the return for the amount of money I gave my ex, doesn't she have to pick up the same amount of income on her return. And if that's the case, wouldn't she also have to claim the taxes.

Sorry for being a little slow, but, I can't quite get through this, but thanks for your help.

[VolvoGirl]

Yes she has to report the income but she doesn't get to claim any of your  tax withholding .  She should be paying in her own estimates during the year to cover her tax on it.

[rjswifty]

Thank You very much.

[jrobin5881]

Finally!! Thank you for the clear instructions. I have a few quick clarification/followup questions to ensure I'm doing this right. 

1099-R INFORMATION:

• Box 1 "Gross Distribution" contains the full amount (my annuity plus ex-spouse apportionment). Box 2a contains"Taxable Amount" stated as, "UNKNOWN"
• Lower portion of 1099-R contains the following Note; " GROSS ANNUITY REDUCED BY $xxxxxxx PAID TO xxxxx UNDER COURT ORDERED APPORTIONMENT. TAXABLE AMOUNT NOT DETERMINED. 

Here's what I'm doing :

• Entering the 1099-R information in "Wages and Income" section of TT.
• Changing the "UNKNOWN" in Box 2a "Taxable Amount" and enter the "Gross Distribution" full amount listed in Box 1instead. (TT did not like the UNKNOWN comment ) 
• Question: I'm concerned the return will be delayed because I'm changing the info in Box 2a  so should I leave it as "UNKNOWN" ? 

NEXT - Other Taxable Income:

• Follow your posted instructions at this point
• Enter shorter version of GROSS ANNUITY REDUCED BY $xxxxxxx PAID TO xxxxx UNDER COURT ORDERED APPORTIONMENT. TAXABLE AMOUNT NOT DETERMINED in the "Description" box
• Enter the total Court Ordered Apportionment amount in the "Amount" box.  

Is this correct? 

Thanks!

[Cynthiad66]

No, do not change Box 2a.  Yes, enter the negative amount as Other Taxable with the appropriate explanation.

[Annoyed2024]

Is it legitimate to do this year after year? 1099R recipient using line 8z of Schedule 1 with negative income, and having the ex spouse file a Substitute 1099-R if there is a private pay agreement as part of the divorce settlement (rather than by QDRO/DRO) that the pension beneficiary (either souse or child of spouse) will give a percentage of the payments to the ex spouse?

If not, is there any other way here to ensure that the recipient of the 1099-R doesn't pay the tax on the portion that is given to the ex-spouse through a private pay agreement?

[RobertB4444]

This is indeed a legitimate way to enter the taxable income for every year that it is occurring.  Entering the negative amount should ensure that it doesn't remain on your tax return and you don't have to pay taxes on it.  

However, it doesn't guarantee that the IRS will never ask questions about it.  Just maintain documentation showing the private pay agreement as well as whatever you have showing the transferred amounts and you should be fine.

@Annoyed2024 

[Annoyed2024]

Thank you!

[lwalker10]

Can this be done in TTO?

[DaveF1006]

Yes.

@lwalker10 

[hokietrax]

Agreed. When I was doing this, I sent texts to my ex-spouse telling her what income I was claiming and what income she was responsible for claiming.  Once she acknowledged it, I saved screenshots of the text exchange for record-keeping.