Alimony that is received by a taxpayer must be included as income on that person’s tax return.
Anyone who pays alimony can deduct the alimony payments on the first page of their federal tax return.
However, in order to be deductible, a few rules must be met:
1.The alimony must be paid by cash, check, or money order.
2.The divorce decree between the former spouses must designate the payments as alimony. Child support is not deductible. Neither are property settlement payments.
3.The alimony payments must stop at the death of the former spouse. If they don’t, then the IRS will not consider the payments alimony.
If you need help filing your tax return, you can contact us at 816-524-4949, or look us up at Hoorfarlaw.com.