In a matter of weeks, New York residents will be required to have their taxes filed with the Internal Revenue Service. Tax time can be stressful for individuals who receive income from a variety of sources, such as wages and tips, investment dividends and inheritances. Additionally, individuals who receive alimony or spousal support from a former partner may be confused as to whether the payments they received over the last year must be included in the annual tax accounting.
Readers of this blog are encouraged to seek the counsel of a tax and family law attorney regarding their specific alimony questions; the information contained in this blog is provided as general guidance only. However, for most individuals, alimony is taxable income that must be declared on one's tax return.
Conversely, individuals who pay alimony generally may deduct the monthly payments that they provide to former spouses or partners, from their income, when they submit their taxes. The reduction of one's income through alimony payments may change his or her tax obligations; again, specific alimony or tax questions about this complex subject should be directed to a trusted attorney.
Tax time is almost here, and making mistakes on one's returns can create problems for individuals far down the road. Many forms of income can raise questions for New Yorkers, particular payments made from and to former partners in the forms of alimony, spousal support and child support. Understanding the purposes and uses of these important family law-based financial directives can help individuals make responsible decisions about how such payments may be used and whether they may reduce or increase their taxable income for tax purposes.