Exspouse and military retirement pay

[heylady214]

I receive a  portion of my ex husband's military retirement and he has never given me a 1099 -R.  What do I do?  He deducts it as alimony and it is not.  My alimony stopped several years ago.

[ToddL]

Your share of your ex-husband's military retirement is considered alimony, deductible by him and reportable by you.

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). 

If he pays you directly, report it under Alimony Received interview, under Less Common Income.

In 2008, the Tax Court recently ruled that a taxpayer’s payments to an ex-spouse under the Uniform Services Former Spouse Protection Act (USFSPA) representing her share of his military retirement pay were deductible alimony payments. - See more at: http://www.journalofaccountancy.com/issues/2008/jan/pensionisalimony.html#sthash.FvXKK2gK.dpuf

[chanceka]

Can you confirm that this is, indeed, current information.  My understanding is that this IRC was repealed. 

[sarajane01]

I have always claimed my alimony as retirement income - pension distribution from a qualified plan.  Is this in error?  Can't seem to find a clear answer on the recipient side. I know I need to report it yet I am wondering if I unknowingly am paying a 10% penalty for early withdrawal!

[DMarkM1]

Military retirement pension is a non-qualified plan.  You can check your past tax returns for any "other taxes."  You would have a form 5329 "Additional Tax on Retirement Distribution."  You could also check on line 6 of schedule 2.  

[Runin09]

Hello,

I receive monthly community property payments directly from DFAS from my divorce, of which I have them take out taxes before I receive payment.  Please help me to understand why then am I paying taxes on it a second time when I report it when filing taxes.  How do I stop having to pay taxes on it twice?

Thanks!

[DMarkM1]

You will not be paying taxes on the income twice.  You report on your tax return all income including the 1099-R you should have received for the retirement income.  On that 1099-R you will see and subsequently enter in TurboTax, any taxes that were withheld so that you get credit for those payments.  At the end, if you have paid more than your tax liability, you will get a refund.  If you have not paid in enough you will owe a tax payment by 15 Apr 2020.  

[Oliver7088]

What if the divorce decree states that the pension is not to be considered alimony?

[Oliver7088]

The divorce decree states pension is to be considered an asset acquired during the marriage 

[Elizabeth580]

Is The former spouse of a military veterans portion of his retirement pay considered alimony? I get 17% and it is court-ordered in the state of California

[VolvoGirl]

Do you get your own 1099R for it?  Whether it's Alimony or considered pension it is taxable either way.  You just enter the 1099R under Retirement not Alimony.  My friend gets both from her ex in California.  She gets part of his Military retirement and enters the 1099R plus he pays her Alimony each month.  

[NetteAnn]

In regards to this question... what if there is a Survivor Benefit Plan (SBP) election? Also, we receive a 1099R. The new tax rules treat alimony differently after 2018. Is it no longer retirement  pay? 

[peltierm32]

Does this still hold true for 2020 tax purposes?  I retired from the military last year and paid my ex-wife (with a personal check) for 6 months of her portion of the military retirement.  The military caught up and paid her via direct deposit for the other 6 months.  My 1099R shows me getting ALL of the retirement income and paying ALL of the taxes.  Is there a way I can deduct her portion from my gross distribution and recoupe the taxes I paid on her portion of the retirement?

[AmyC]

No. Tax law used to be that alimony was deductible by the payer. If your divorce was before the laws changed, you are grandfathered in . If you got divorced 2019 or later, then alimony is not deductible to you. 

See IRS Topic No. 452 Alimony and Separate Maintenance for complete details.

If the payments were not alimony, your divorce decree would have to be pretty specific with what it is and tax consequences.

@peltierm32

[peltierm32]

Thank you for the reply.  I was divorced in 2017.  I retired on 1 Jan 2020 and the QDRO was updated (amended) in June 2020.  Am I still grandfathered in?  The amendment does not state anything about "alimony".