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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hi There, Me again. Gigi:) I am doing my taxes online and

Customer Question

Hi There,
Me again. Gigi:)

I am doing my taxes online and I was wondering if my husband didn't start paying me alimony until a little before we were legally separated, do I have to claim it as income for the whole year?
Submitted: 3 years ago.
Category: Tax
Expert:  Megan C replied 3 years ago.

MyVirtualCPA :

hey Gigi

MyVirtualCPA :

How are you this morning

Customer :

OK.

MyVirtualCPA :

To be taxable alimony, it must be paid under a decree of divorce or separate maintenance

Customer :

I have another question. If my soon to be ex only starting paying alimony later in the year, do i have to claim it for the whole year?

MyVirtualCPA :

So, if your husband was paying you prior to the separation, that amount would not be taxable to you

Customer :

So only the last month?

MyVirtualCPA :

You pay tax on the alimony that is paid under the decree of separate maintenance

MyVirtualCPA :

Before that, it is not taxable to you or deductible by him

Customer :

So to be clear, only form the time of the SEP agreement? But I get the write off for the house from the whole year?

MyVirtualCPA :

Yes, you would write off the house the entire year. You are considered unmarried at the end of the year if you are under separate maintenance agreements. The only reason your alimony is not taxed the entire year is because you were not under a legally binding agreement until later in the year.

MyVirtualCPA :

Before that, it's like a gift

MyVirtualCPA :

http://www.irs.gov/taxtopics/tc452.html

Customer :

Ok. Life just got good again:)

MyVirtualCPA :

Yes I have linked to the IRS page that discusses alimony, in case you want to do some reading about it.

Customer :

Also, I bit confused on the Scottrade Mutual funds I have that were in our trust that I juts got transferred into my name out of the trust. Should I have an accountant look at that. I liquidated alot to have back up money becuas eI didn't know what he was going to do. They were given to me in the settlement.

Customer :

Sorry about the typos.

MyVirtualCPA :

That's fine. Yes, I would have an accountant look at everything if you are unsure

Customer :

ok. Thank you:)

MyVirtualCPA :

You're welcome.

MyVirtualCPA :

Is there anything else you need today, Gigi?

MyVirtualCPA :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer :

If the primary house loan is in my husbands name and I am on title and I pay the mortgage, can I still write it off?

MyVirtualCPA :

If you paid the interest, yes. You would report the interest on line 11 of schedule a instead of line 10 because line 10 matches what is reported by the banks to the IRS records

MyVirtualCPA :

So, if the loan was not in your name, place the interest on line 11 if you are the one who actually paid the mortgage

Customer :

OK. Great! Thank you!

MyVirtualCPA :

You're welcome

MyVirtualCPA :

Anything else?

MyVirtualCPA :

Once satisfied with our communication, please rate as "excellent" so that I may receive credit for helping you today

Customer :

I think I am doing good...I'll let you go for now:)

Customer :

Thank you.

MyVirtualCPA :

You're welcome. Please don't forget to rate!

Expert:  Megan C replied 3 years ago.
Hello, Gigi

Feel free to respond here using the reply button below. Let me know if I can be of any further assistance.

Please, also rate my response so that I may receive credit for assisting you today.
Expert:  Megan C replied 3 years ago.
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer