I do not know how the IRS views alimony. It may depend on how it is paid. For example, some receive a cash payment monthly, etc. Some receive a settlement from the sale of property or "in kind" support such as a vehicle, insurance, or other ways.
Only a tax professional can answer your question. If you had your taxes prepared by someone this spring, call them up and ask. It should only take 60 second. Don't guess and don't assume it will be overlooked by the IRS. I do know you don't have to declare alimony, child support and some other types of income when you apply for a loan.
My sweetie paid alimony to his XW for a time. It was viewed on his taxes as a deduction of income for him, and an addition to income for her. It's not taxed separately, but as an addition to your income, like interest or dividends.
Child support, however, is not included in the IRS calculations. The one who pays it does not get to deduct it from taxable income and the one who receives it does not claim it as income.
Well I was going to get alimony and was going to get $900 a month, and my lawyer said $200-$300 of that a month would go to taxes. We opted to ask for a one time lump sum as part of the property settlement so I wouldn't have to pay the taxes. We estimated what the total amount would be without taxes over 10 years and I got that instead. I didn't want to have to mess with taxes.
Thanks for all your responses, so if he gives me cash per month would he still need to declare it on his taxes? Also do I need to let the attorney know this process? I told her 2000 a month for 3 years then 1500 a year until I remarry. Also he wants proof that he sent it to
Dona,
I do not know how the IRS views alimony. It may depend on how it is paid. For example, some receive a cash payment monthly, etc. Some receive a settlement from the sale of property or "in kind" support such as a vehicle, insurance, or other ways.
Only a tax professional can answer your question. If you had your taxes prepared by someone this spring, call them up and ask. It should only take 60 second. Don't guess and don't assume it will be overlooked by the IRS. I do know you don't have to declare alimony, child support and some other types of income when you apply for a loan.
Again, check with a tax professional.
CL-Wisdomtooth2020
Thanks for your reply. Didn't know since I don't work now, if it would be figured on my husband's income?
Dana
My sweetie paid alimony to his XW for a time. It was viewed on his taxes as a deduction of income for him, and an addition to income for her. It's not taxed separately, but as an addition to your income, like interest or dividends.
Child support, however, is not included in the IRS calculations. The one who pays it does not get to deduct it from taxable income and the one who receives it does not claim it as income.
I hope that helps!
~calla~ mom to rosie and gracie
Hi,
Thanks for all your responses, so if he gives me cash per month would he still need to declare it on his taxes? Also do I need to let the attorney know this process? I told her 2000 a month for 3 years then 1500 a year until I remarry. Also he wants proof that he sent it to
Karen ~ wildlucky4me ~
so if he gives me cash per month would he still need to declare it on his taxes?