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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience:  Nearly 30 years of varied tax industry exp. Tax Biz owner
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Hello I am court ordered in my divorce degree to pay my ex

Customer Question

Hello
I am court ordered in my divorce degree to pay my ex spouses Health Care insurance coverages (Cobra) premiums. Is this considered a "form of alimony" that I can claim as a
deduction or is this considered "health care expenses" which must meet the 7.5% of my adjusted gross income before I could consider it as a deduction. Trying to get this figured
before I file my taxes.
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.
Welcome. THANK YOU for choosing Just Answer. My goal is to help make YOUR life, a little...LESS taxing.

It is considered a form of alimony, and you may deduct the cost. SEE BELOW:

Amounts you pay to or for the benefit of a former spouse can be considered alimony. Alimony is deductible by the payer as an adjustment to gross income and includible in the income of the recipient -- your ex-wife.
REFERENCE SOURCE:

http://www.bankrate.com/finance/taxes/deducting-court-ordered-cobra-payments.aspx

Please let me know if I can be of further assistance to you regarding this matter.

Thank you again for using JUST ANSWER.
Customer: replied 1 year ago.

Thank you


So I can claim the cobra premiums as alimony and add this to my regular alimony and total the 2 for my alimony deductions ?


Does my ex spouse have to claim the cobra premiums as income ?


Currently my ex spouse is assuming the cobra premiums do not need to be claimed as income.


 


The regular alimony has to be claimed and my ex spouse knows this.


 

Expert:  Tax.appeal.168 replied 1 year ago.
Hello again,

You are welcome.

Q: So I can claim the cobra premiums as alimony and add this to my regular alimony and total the 2 for my alimony deductions ?

A: Yes, this is correct.

-----------------------------------------------------------------------

Q: Does my ex spouse have to claim the cobra premiums as income ?

A: As the premiums are a form of alimony, the answer is yes.

-----------------------------------------------------------------------

Q: Currently my ex spouse is assuming the cobra premiums do not need to be claimed as income.

A: If your ex wife is paying the premiums, no she does not have to claim the premium payments as income.

-----------------------------------------------------------------------

Q: Currently my ex spouse is assuming the cobra premiums do not need to be claimed as income.

A: Yes, the alimony payments are deductible to you, and she has to claim the payments as income.
Customer: replied 1 year ago.

Ok, Thank you


So is this considered "Third Party Payments" per Pub 504, page 13 ?


I give my ex money each month for the Cobra premiums, my ex takes the money and pays the Cobra premiums. I can deduct this as a form of alimony , but since my ex actually pays the premiums from money I send my ex does not need to claim it as income ?


 

Expert:  Tax.appeal.168 replied 1 year ago.
Hello again,

With all due respect, you're making this more complicated than it really is. Taken from Page 13, Pub 504:

Payments to a third party.

Cash payments, checks, or money orders to a third party on behalf of your spouse un-der the terms of your divorce or separation instrument canbe alimony, if they otherwise qualify. These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc.), taxes, tuition, etc. The payments are treated as received by your spouse and then paid to the third party

The court ordered cobra payments qualify as alimony, therefore is considered income to her that she must claim.
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 2534
Experience: Nearly 30 years of varied tax industry exp. Tax Biz owner
Tax.appeal.168 and 2 other Tax Specialists are ready to help you
Expert:  Tax.appeal.168 replied 1 year ago.
Thank you for the high rating and the generous bonus. I appreciate it. Even if prompted to do so, there is no need to respond to this post. Have a pleasant weekend.

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