Reporting Alimony to the IRS
First, the payer and the recipient must not be living together in the same household. This rule applies to payments that are made between couples who have been legally separated under a decree of divorce. It also applies to payments made under a separation decree.
The couple cannot file their income taxes jointly. If they are filing jointly, then legally, any payments made between them cannot be treated as alimony. Payments in property other than money are not considered alimony.
The recipient of the payment must be a current or former spouse. This also applies if the payments are received on behalf of a current or former spouse. If the divorce or separate maintenance decree does not explicitly state that the payment is not alimony then it must be reported to the IRS. This applies to a written separation agreement as well. If the payment is not part of a property settlement, or designated as child support, and there is no legal liability if payments are discontinued in the event that the recipient passes away, then it must be reported as alimony and taxed appropriately.
How We Can Help
If you, a friend or a family member find themselves in a situation such as this, please call the Law Office of Scott A. Ferris, P.A. at 305 670-3330 right away. Scott A. Ferris, Esq. is a licensed family law attorney who has been practicing law since 1987. He is available whenever you need him to pursue your rights. Please learn about our firm at www.FerrisLawFirm.com.