The Effect of Alimony Payments on Your Tax Return
By Taxation Solutions, Inc. on 2016-07-13
If you've separated from a spouse, you may be paying alimony to or receiving it from your ex-husband or ex-wife. Do you understand how alimony payments affect your tax return? The biggest thing to know is that if you're paying alimony to a former spouse, you may deduct that amount from your taxable income. If you receive alimony, meanwhile, that amount must be reported as part of your taxable income. Note that child support is never tax deductible, and voluntary payments (as opposed to court-mandated payments) do not count as alimony.
Taxation Solutions, Inc. is your best bet in Charlotte for tax help on a wide array of topics. If you're newly divorced and wondering how to handle your alimony payments or monies received, don't hesitate to give us a call. We'll walk you through everything you need to know so that you can be certain you're remaining in compliance with the IRS's demands. Our team has more than 40 years of experience performing tax resolution services, and we're extremely familiar with the various tax codes that affect divorced and separated couples.
Call or e-mail us now to get more information, and to book your initial consultation with a member of our team!