Are Alimony or Division or Property payments retroactively deductible?

[bfunkey]

1989 divorce in common property state (CA) awarded my former spouse 23% of my military retirement pension, payable monthly, as division of property (not alimony) under the Uniformed Services Former Spouses' Protection Act (USFSPA), Title 10, United States Code, Section 1408.  The military deducts and pays her portion after computing tax withholding, and reports 100% of my pension as taxible income to me (1099-R).  Questions:

a. Where and how do I deduct payments made to her (former spouse)... as Alimony?

b. For how many years are these payments retroactively deductible? 

[ToddL · Accepted solution]

Go to the Other Reportable Income interview, the very last interview in Wages and Income (Federal Taxes tab > Wages & Income category > Less Common Income subcategory > Miscellaneous Income sub-subcategory).  (Or, enter "other reportable income" in the Search Box of TurboTax online and then select "jump to other reportable income"). The amount you will enter is NOT wages.

Enter the amount paid to the ex-spouse as a negative number (in parentheses). Describe the entry as "Mil Retire Pay to ex-spouse (XXX-XX-XXXX) per USFSPA"

(If the program limits the number of characters for description, you may have to print and file the return by mail. The program will accept more characters than the screen will display; you would either have to look at the copy printed for your records, or see if the entry results in an e-file error).

You can go back three years to amend returns and claim this deduction.  See TurboTax FAQ - How to Amend (Change or Correct) a Return You Already Filed