who pays taxes on portion of ex's military retirement HE pays ME directly--HE receives full 1099R

[tallyally]

So I receive a portion of my ex's military retirement, we were not married long enough for the military to recognize this, but under TX law, I was married long enough to get a portion.  HE receives his full retirement from DFAS, 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) For many years, he was told to pay the taxes because he gets the 1099R, he told me a few years ago I needed to list this as "alimony" even though our divorce decree says no alimony is paid, I have been paying taxes on Alimony for the retirement he has paid me since 2017 now.  I STILL cannot get a definite answer as to WHO and HOW the tax is to be paid . .  I have heard it both ways.  Do I pay it even though DFAS pays him and he gets the 1099R? Do I pay it as alimony even though our decree says no alimony is paid? Please help!

[DMarkM1]

Here is a guide to the Uniformed Services Former Spouses Protection Act.  Note in Paragraph I (1) that retired pay is marital property for division.  Additionally here is an IRS Topic describing alimony or spousal maintenance payments.  If the payment does not meet all the tests then it is not treated as alimony on tax forms.  

If the payment meets the requirements for alimony/separate maintenance then it is treated as alimony on tax forms.    

Since the divorce was executed before 2019 any payments that meet the tests to be considered alimony/separate maintenance payments would be taxable to the receiver.

[tallyally]

Yes, I found that, but it is still unclear,

#1 - my decree does NOT say it is "for community property" but since I am not 10/10, that is the reason I got it because of TX community property law

#2 - my decree DOES say "no taxable alimony is ordered" (they did change the topic info, at one time it did state "if your divorce says no alimony, it is not alimony" so issue #2 may be irrelevant, I'm guessing issue #2 it ok to claim it as alimony even if my decree says i have no alimony . . .

but issue #1 above,  it was awarded under community property even though it does not spell out the words "under community property" makes me wonder if this is ok. That is the reason I get it, but it is not spelled out in the decree, this rule is so vague.

PLUS my newest main concern, military retirement is NOT taxable in Arizona as of 2021, so if I include it as alimony in my income, which I have been, I am paying state tax on it that is not due. I have no problem paying federal tax on this money, but I am not  suppose to pay state tax and I just want to report it properly!

Can I just subtract this on state forms and send a copy of the decree stating it is military retirement?  and if I do, it shows as ALIMONY income so it is contradicting itself!

[DMarkM1]

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".  

Do not attach/send in any supporting documents unless requested.