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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29798
Experience:  Taxes, Immigration, Labor Relations
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My daughter has not been adding her spousal support into her

Customer Question

My daughter has not been adding her spousal support into her taxes because she thought they were treated the same way as child support. Since she has to stay at home because of a special needs child, she hasn't been able to work outside and the support she is getting barely covers the rent and utilities. What should she do?
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: That's all I know at this time. I can ask her if he need more information.
Submitted: 5 months ago.
Category: Tax
Expert:  Lev replied 5 months ago.

There is no choice - alimony is specifically included into gross income fro income tax purposes.
You suggest that your daughter to prepare her tax returns and report alimony as her income.

She still may claim her child as a dependent and might be eligible for the HOH - head of household filing status.

Let me know if you need any help with reporting.

Customer: replied 5 months ago.
Should she contact IRS and ask how she can work out her taxes and her payment? Right now, she has no way of paying them.
Expert:  Lev replied 5 months ago.

The IRS will not discuss payment issues if all tax returns are not filed.
So teh first step to prepare and file all missing tax returns.

After that - you may discuss payment options with the IRS.
That may be installment payment plan or if payment will result financial hardship - she may ask for the status "currently not collectible"

That will allow her to avoid garnishments.
Let me know if any details needed.

Customer: replied 5 months ago.
OK. I will talk to her today and see what we can do. It sounds like she needs someone who knows how to file amended returns.
Expert:  Lev replied 5 months ago.

amended tax return are ONLY needed if she already filed tax returns and changes are required.

If she never filed - there is nothing to amend.

But otherwise - yes - she will need to amend.
You will need to use form 1040X and attach also other forms and schedules that are affected.

Amended tax returns are mailed to the IRS - there is no e-file.

And processing might take up to 4-6 weeks.

Customer: replied 5 months ago.
Should she file a 4868 along with a token payment and put "Unknown" as what her estimated tax will be? She has NO idea and we are obviously going to have to go to a CPA to work this thing out.
Expert:  Lev replied 5 months ago.

Form 4868 will ONLY affect 2016 tax filing.
You may pay any amount - it is understandable that without tax return we may not know the exact amount.

Just pay as much as possible - that amount will go toward her tax liability anyway.

Customer: replied 5 months ago.
We'll give it a shot and see what they say. Poor kid is screwed no matter what she does.
Expert:  Lev replied 5 months ago.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all Social Security / Tax related issues.