Under my divorce decree I make alimony payments monthly to my ex for six years. However if my ex passes away it stipulates that I must continue payments to their estate for the remainder of the six years. Under tax law these payments are not considered alimony. Do I send my ex a 1099 each year for payments I make them?
No. According to the IRS Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit.
Here is a link for reference.
The IRS alimony rules are about who pays the taxes on the payments. The payments are not considered alimony, which is taxable to the recipient, if under a ruling in 2018 or earlier, so they are taxable income to you.
@DMarkM1 Thank you for your reply, but my ex needs to claim income received over a certain amount each year. Since the payments are not considered alimony, they are reportable income. If I do not give them a 1099 how else can the income be reported? ( I know it’s not tax-deductible for me.)
It is up to your ex-spouse to report the income as required on their tax return. As noted above, the 1099-MISC is only used for payments made in the course of a trade or business.
Tax law requires that all income not specifically exempt from taxation be reported on as income on a tax return. A form is not required for income to be listed on a tax return. Many taxpayers have cash receipts of income without specific documentation each year to report.
Since the income isn't deductible to you, no proof that you paid it is required by you, and whether or not it is reported as income by your former spouse isn't a liability for you. By that I mean, if it isn't reported on that return, you are not liable because you didn't issue a form of some sort. Only the individual who should have reported the income bears the responsibility to report it.
Your only obligation is to demonstrate that you have followed the terms of your court order, which can be done by keeping your canceled check or other proof of payment in with your other important records.