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Here's the IRS guidance on this ... Alimony is most certainly deductible .. AND, you don't even have to itemize to take the deduction ...
You do not have to itemize deductions to deduct your alimony payments. You must claim the deduction on Form 1040 (PDF). You cannot use Form 1040A (PDF), Form 1040EZ (PDF), or Form 1040NR (PDF). You must provide the social security number of the spouse or former spouse receiving the payments. If you don't, you may have to pay a $50 penalty and your deduction may be disallowed. from: http://www.irs.gov/taxtopics/tc452.html
Now, if the money was distributed to your wife as part of the divorce SETTLEMENT, rather than by your simply taking withdrawals on an ONGOING basis and sending her the alimony payments, that was probably done through something called a QDRO (Qualified Domestic Relations Order). Which simply puts the money into an IRA for her and - without any tax or penalty to you, then SHE will pay the taxes as she pulls it out of her own IRA.
But again, if you are making withdrawals on an ongoing basis (paying the taxes on that, the following April, of course), and then sending it to her - you simply deduct it from your income on the 1040 if you don't itemize, or on the 1040A if you do. ... Alimony payment ARE tax deductible ... AND she must pay tax ON that income as well.
I still don't see you coming into the chat here, ... So to recap, if this is a lump sum amount being done as PART the divorce settlement, you want to be sure that your attorney makes sure - or if you're doing this yourself, make sure the judge - does this through a QDRO (pronounced Quadro) - This would be typical operating procedure for divorce proceeding where part or all of the 401(k) to is awarded to the other spouse ... and that is not taxable to you ... in this scenario, YOU got a tax deduction on the money as it went into the 401(k) ... pre-tax contributions ... and SHE will pay the tax (and penalties if she's under 59 and 1/2) when she pulls it out.
And if you're talking about alimony PAYMENTS into the future, those ARE tax deductible ... again here's the IRS guidance: http://www.irs.gov/taxtopics/tc452.html
I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here) … Please let me know if you ave ANY questions at all.
Again, let me know ...
... just checking back in here, as I never did see you come into the chat.What happens now? If you haven’t already done so, please rate your answer above. That's the only way we get credit for our work
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so if the money is transfered to her through a QDRO as it was, I still write it off? I guess I wasn't understanding that. The money was mine, court ordered me to pay, I paid in a lump some by way of QDRO.
seems strange...I take a $83,500 loss in my property, income, give it to her.....I have no write off at all?