I was divorced in Jan 2019. As part of settlement, I live in the home, and my ex is paying half the mortgage to me until my child turns 18. Is the $ taxable on me.

[snixen]

He is on the deed but not the loan.  Is the money he's giving me for this purpose a tax liability for me?

[Opus 17]

Does your ex still own the home (or half of it?)

[Carl]

It also matters if you're in a community property state, and what the courts say that money is. Child Support? Alimony? Something else?

[Opus 17]

Well, alimony is not taxable or deductible for any divorce that was finalized after Dec 31, 2018.  The only issue is who owns the property and who can take the itemized deduction for property taxes and mortgage interest.  If he is still a part-owner of the property, and pays half the mortgage, he can deduct half the interest and property taxes (if he itemizes) and you can deduct the other half (if you itemize).  If he is NOT an owner, then the payment is non-taxable alimony to you, and you can deduct all the property taxes and mortgage interest.  

[pk]

You said "He is on the deed but not the loan" --- if the deed has not been modified then he is a co-owner.   and   as @Carl  mentioned  you need to be sure whether the court called this  alimony or child support  ( for future ) because  currently neither child support nor alimony is income to you but prior to 2018 alimony was income to you  ( and it may change again)

[Opus 17]

 If he is on the deed, then it’s not alimony even under the pre-2019 rules. He’s paying upkeep on his own house.

[Carl]

Since the divorce was not finalized until 2019, that would mean he can also claim 50% of the mortgage interest and property taxes too.

[Opus 17]

Which is what I noted.  

[snixen]

1) It is not considered child support nor alimony. It was an independent settlement in lieu of either.

2) I live in an equitable distribution state.

[Opus 17]

Neither of those things matter.  If he is the owner (co-owner) then he is simply paying the expenses on his own property.  (The payment may technically be alimony as well, but that has no tax implications if it is or isn’t because the divorce was finalized in 2019.)

The payment is not taxable income to you or deductible by him.  But, he can take an itemized deduction for half the mortgage interest and property taxes, and you can deduct the other half.  

[RTaylor00]

I was divorced in July 2018 and my ex is still on the deed and loan of the home i live in. The home was awarded to me since i used an inheritance to buy the home. We are both on the deed and the loan. He's refusing to sign a quit claim deed even though divorce decree states he must sign when presented with it. He pays me alimony each month and I use that to pay mortgage. do I still have to claim full alimony or?  Any advice would be wonderful.

[Critter-3]

What you use the alimony for is irrelevant ... it is taxable to you period.  As to his failure to sign the quit claim deed  then he is in contempt of court ... sue him. 

[RTaylor00]

What is the typical percentage for alimony payments? He pays me 1200 a month and i use 1000 for mortgage payments. I can deduct mortgage interest obviously is there anything else with the house i can use to get as much of a break as i can? TY 

[Vanessa A]

You alimony is taxed as regular income so every persons taxable alimony is taxed differently.  It also depends on your filing status.

You can use the chart in this link to determine your tax bracket.

When calculating your taxable income you will deduct your standard or itemized deductions to determine which bracket you fall into.

So, if you are receiving $14,000 a year in alimony and have income from employment of $40,000 per year you have total income of $54,000.  If you are filing as head of household your standard deduction would be $19,400.  Your taxable income would be $34,600 (54,000-19,400) which would be in the 12% bracket. This does not mean your entire $34,600 would be taxed at 12%.

The first $14,650 would not be taxed. So, in this example, you would have $19,950 taxed at 12% for your federal taxes. 

Your mortgage interest will only benefit you if the interest payments and the total of your other itemized deductions such as medical expenses in excess of 7.5% of your AGI, charitable donations and other taxes like state and local income taxes or property taxes are more than your standard deduction.  You cannot deduct the entire mortgage payment only the interest portion.  The interest will be reported to you on form 1098 which you will receive from your mortgage holder. 

The 2022 Standard Deductions are as follows:

• Married Filing Joint (MFJ)              $25,900
• Married Filing Separate (MFS)      $12,950
• Head of Household (HOH)            $19,400 
• Single                                                $12,950