Open 24 hrs / 7 Days A Week
Real Tax Attorneys For Real Tax Issues

Fast Action. Proven Results.


Alimony payments and tax deductions

Seemingly straightforward tax deductions may prove to be not so simple when it comes to tax reporting. For example, as a Michigan resident it is allowable to deduct alimony payments from your taxable income. Yet as easy as this may sound, there are a number of federal requirements one must follow before taking such a deduction.

As alimony is an above-the-line deduction, it does not require itemization. However, for the payer of the alimony to deduct payments, the recipient of the alimony must report such payments as income. If the deduction on the payer’s return does not match up with the reporting of income on the recipient’s return, there are chances that both the payer and recipient may face an IRS audit.

Taxpayers must fulfill a number of requirements before an alimony deduction is allowable. For example:

  • Any alimony payments need to be a part of a divorce or separation agreement.
  • It is required that such payments be made on behalf of the former spouse. If such payments are made to third parties, these must be made pursuant to the divorce or separation agreement and be on behalf of the former spouse.
  • Any payment obligations must cease if the former spouse dies. Otherwise, the IRS will not view it as an alimony payment.
  • All alimony payments must be cash or a cash equivalent.
  • Child support payments are different from alimony and therefore not deductible. If there is a deduction of a so-called alimony payment after a child leaves the recipient’s home, the IRS may consider it a child support payment instead.
  • There can be no reference in the divorce agreement stating that such payment is something else other than alimony.
  • Neither payer nor recipient can reside in the same residence or jointly file a 1040 for an alimony payment to be deductible.

It is always better to get it right to begin with than risk an audit down the road. And a tax law attorney would be knowledgeable concerning these distinctions.

No Comments

Leave a comment
Comment Information

When you hire us, we can help: you:

  • Obtain emergency relief from IRS actions
  • Stop the IRS from garnishing your wages
  • Prevent levees from being placed on your bank accounts
  • Keep tax payments and penalties from spiraling out of control

Phone Answered 24/7

We are always available to answer your questions and put your mind at ease.

Call us today at
800-778-2741 for a free initial consultation

Competitive Pricing

We offer flat fees that fit your needs and your budget.

Read Our Pricing FAQ

What Past Clients Say About Us

I know I won't be getting those frightening letters anymore thanks to Chad Silver - such a weight off my mind!” - A. Gould, Ohio

Read More Testimonials

A Real History of Success

IRS debt of $682,437, Attorney Silver and his team negotiated the Debt down to zero.

View More Results

You Can Fight The IRS And Win. We Can Help.

No matter where you are in the process, we can help you make the best of your situation. Call us toll free at 800-778-2741 for a free case evaluation.

Get A Free Consultation »

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.

Back To Top