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Taxes Information |
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Tax Deduction for Alimony Payments? - Yes!
Over 50% of marriages end in divorce in the United States. Many divorce decrees include provisions for the payment of alimony. The IRS takes the position that such payments constitute a form of income and create an alimony tax deduction for the person making payments. According to the IRS, alimony payments are taxable to the recipient in the year received. In turn, the person paying the alimony can claim a deduction for the payments if the following tests are met: 1. You and your spouse or former spouse do not file a joint return with each other, 2. You pay in cash (including checks or money orders), 3. The divorce or separation instrument does not say that the payment is not alimony, 4. If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment, 5. You have no liability to make any payment (in cash or property) after the death of your spouse or former spouse; and 6. Your payment is not treated as child support. If you are receiving or paying alimony, you must use Form 1040 for your personal taxes. Regardless of income levels, deductions or miscellaneous tax issues, you cannot use Form 104A or Form 1040EZ. In preparing your tax return, the person receiving alimony will report the information on line 11 of Form 1040. That person must also provide their social security number to their former spouse or face a fine of $50. The person paying the alimony can claim the deduction on line 34a of Form 1040. Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.
MORE RESOURCES: So what are these state taxes on which nearly $234 million are owed? The answer can be found at http://bit.ly/bN1p8g — the Pennsylvania Department of Revenue website. NEW YORK - The developers planning to build a $100 million Islamic center near the World Trade Center site still have financial hurdles to clear: They haven't finished buying all the property they want for the project and are nearly a quarter-million dollars behind on real estate taxes and late fees. TOWNSEND -- Taxes, the economy, illegal immigration and even school uniforms were covered during a two-hour candidates forum for Democrat and Republican candidates for the 1st Middlesex District at Memorial Hall Thursday. Campaign 2010 GOP businessman runs for governor Jack Kimball wants to slash state taxes that he says handcuff New Hampshire entrepreneurs. But if the Dover Republican's gubernatorial campaign is rooted in his decades as a businessman, it's also a product of the Tea Party movement that emerged as a conservative political force following President Obama's election two years ago. "I look at things ... Minnesota's candidates for governor engaged in a heated debate over taxes and the deficit-plagued state budget before a wind-chilled but rowdy crowd Friday at the Minnesota State Fair. TOWNSEND -- Taxes, the economy, illegal immigration and even school uniforms were covered during a two-hour forum for Democrat and Republican candidates for the 1st Middlesex District at Memorial Hall yesterday. Guests who spent the night at lodging establishments in Volusia County in July paid a total of $932,294 in resort taxes, 10 percent more than the same period last year, according to a report released Friday by the county's revenue department. West Virginia state government collected $31 million more in taxes last month than expected, suggesting signs of a rebounding economy. Massachusetts has collected $89 million more in taxes during August compared with the same month last year, but... Congress seems increasingly reluctant to let taxes go up, even on wealthier Americans.Worried about the fragile economy and their own upcoming elections, a growing number of Democrats are joining the rock-solid Republican opposition to President Obama's plans to let some of the Bush administration's tax cuts expire.Democratic leaders in Congress still back Obama, but the willingness to raise ... |
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