Talk:Alimony Paid

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Client wants to minimize tax impact to former wife regarding alimony he paid her. He doesn't want her to get hit with big tax bill.

Non-lawyer form states as follows:(preprinted form in italics)

"Husband agrees to pay spousal support (alimony) in the amount of $3,000 every month, beginning {date} final decree and continuing until {date or event} 36 months from the date of the final decree. Explain type of alimony (temporary, permanent, rehabilitative, and/or lump sum) and any other specifics: Husband agrees to continue payment of health insurance premiums for Wife for a period of one year from the date of the final decree of divorce. Husband will pay to Wife a lump sum payment of $93,320 upon final judgement of dissolution of marriage.

Any suggestions? I don't see how wife can avoid reporting income if husband reports on line 31a. If husband doesn't deduct the former wife must still report, correct? Also, because payments will end after 3 years, husband will be subject to recapture, correct?

All input is most welcome!

Personal tools