MIME-Version: 1.0 Content-Location: file:///C:/390446F3/AlimonyPayments.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Alimony Payments

Alimony Payments<= /span>

You may deduct the alimony or separate maintena= nce payments you are required to make to your spouse or former spouse, or to a third party on behalf of that spouse. This article covers alimony under div= orce or separate maintenance decrees or written separation agreements entered in= to by you and your spouse or former spouse after 1984. It explains what is deductible if you pay alimony, and what is taxable if you receive alimony. =

Alimony payments you make un= der a divorce or separation instrument, such as a divorce decree or a written agreement incidental thereto, are deductible if = all of the following requirements are met:

  1. You = and your spouse or former spouse do not file a joint return with each othe= r,
  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 l= egally separated under a decree of divorce or separate maintenance, you and y= our 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.

Child support is= never deductible. If your divorce decree or other written instru= ment or agreement calls for alimony and child support, and you pay less than the total required, the payments apply first to child support. Any remaining am= ount is then considered alimony.

Property settlements, whether in a lump sum or installments, even though required by the divorce decree or other written instrument or agreement, do not qualify as alimony. Any payments not requir= ed by such a decree or agreement do not qualify as alimony. =

You do not have to itemize deductions to claim = your alimony payments.  However, yo= u must provide the social security number of the spouse or former spouse receiving= the payments. If you do not, you may have to pay a $50 penalty and your deducti= on may be disallowed.

If you are the spouse or former spouse who is receiving the alimony, you must repo= rt the full amount as income. If you do not give your social security number to your spouse or former spouse who is making the alimony payments, you may have to pay a $50 penalty.