Hi, I am recently divorced and I have two questions.
1. I paying spousal and child support to my ex. My current job does not allow me to deduct directly from my pay check ***BEFORE*** taxes. So I am handing her checks that are paid from my net income :( This is quite costly for me. At the end of the year can I save all these checks and deduct them in turbo tax? If so how?
2. I turned into single nov-2019. That means I was married for most of the year until november-2019. When I file next year what status should I say on turbo tax? Single or head of household. By the end of 2019 my status was single for 2 months and married for 10 months. Which one is the status for the year on TurboTax?
thank you very much.
1. Sorry, Child Support has never been deductible. Alimony paid used to be but no longer is. Alimonies for divorces and separations finalized after 2018 are no longer taxable or deductible. See Tax Reform
2. You file 2019 as Single. Your filing status is based on December 31 of each year.
Alimony and spousal support for divorces and separations finalized after 2018 are no longer taxable or deductible.
Child support provided or received is not reported on a tax return.
If you are not legally married as of 12/31/2019 then you can only file your 2019 tax return as Single. Unless you have a qualified person as your dependent, provide over one-half the cost to maintain your household and meet the other requirement you can file as Head of Household.
See this TurboTax support FAQ for Head of Household - https://ttlc.intuit.com/community/family/help/do-i-qualify-for-head-of-household/01/25539
I don't understand. If it not taxable, can I send her a check **BEFORE** tax, meaning from my gross income? The problem I have is that at my work they don't allow that. So I am writing checks after all the deductions are taken from my payment. It is super expensive.
This is like giving her tax free money. Sounds like she does not even have to pay taxes on it. It is not traceable. This does not sound right. It will be thousands of dollars at the end of the year AFTER taxes. Like me giving her free cash gifts every month.
Does turbo tax have an item asking for how much spousal support I paid?
Sorry but that's the way it is now. You used to be able to deduct Alimony paid and she would have to report it as income. It is now a personal expense like any of your regular bills.
Generally this is taken into account when they decide on the alimony amounts. You just make the alimony payment less because they receive it after tax. The IRS changed this largely due to the fact that the spouse paying the alimony took the deduction, but the spouse receiving alimony did not claim it on their taxes or did not owe taxes on this money.
For child support it is different because everyone pays for child expenses after taxes anyway, so why give them a tax break because they are divorced.
Spousal support is no longer deductible or taxable at the federal level, but some states still adhere to the old rules under which it remains deductible/taxable - at the state level. Check your own state’s tax website.
Make sure to use the language the payment is not deductible for divorce decrees executed after December 31, 2018. People can still deduct alimony payments, just not if they settled the divorce after that date.
I consulted with HR and is all correct. All spousal/child support is not deductible. It is all from the the net salary now. They make these laws to protect marriage by making divorces very expensive. But I think it will back fire, as people understand more how expensive is a divorce, less marriages will occur for sure.
thanks for the answers.