Alimony may be considered income from the recipient’s ex- spouse

On Behalf of | Nov 4, 2016 | Alimony

Not every Oneida County divorce will result in an award of spousal support. Some individual cases may be more likely to result in the award of alimony

from one former partner to the other than other cases, but these determinations are made on a case-by-case basis. Readers who are facing dissolution and who would like to understand if their case may result in alimony awards are encouraged to speak to their family law attorneys.

For individuals who do receive alimony awards, however, it is important for them to understand that their support payments may be taxable. Just as any earned income he or she receives may be taxed by the state and federal governments, so too may the payments received from his or her ex be taxed as income

. Conversely, individuals who pay alimony to their former partners may be able to write off their alimony payments and not include those sums in their taxable income.

Since failing to report one’s full income on his or her tax returns can result in penalties and sanctions, there are some important records individuals should retain with regard to the alimony payments they make or receive. Copies of checks that are sent or received should be kept, as should a ledger that indicates the date and amount of each payment. Any records that prove the payment of cash from one former spouse to the other should also be maintained.

An alimony award can have repercussions on how a person approaches the preparation of his taxes. The tax implications of a former couple’s alimony situation should be discussed with their divorce attorneys and financial professionals. This post is offered only to introduce a complex legal topic and should not be interpreted as legal advice.