Frequently Asked Tax Questions And Answers
Keyword: Alimony
3.4 Itemized Deductions/Standard Deductions: Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans,
etc.)
I went through a divorce last year and paid a lot of legal fees.
Are these deductible on my tax return?
Legal fees incurred or paid for a divorce are personal in nature, and are
not generally deductible. However, legal fees incurred or paid for the production
or collection of taxable income may be deductible. You may deduct legal fees
for collecting alimony because alimony is taxable income. These deductions
are taken on line 22 of Form 1040, Schedule A (PDF), Itemized
Deductions. For additional information, refer to Tax Topic 508, Miscellaneous
Expenses , and Publication 529, Miscellaneous Deductions .
References:
Can I deduct alimony paid to my former spouse?
If you are divorced or separated, you may be able to deduct the alimony
or separate maintenance payments that you are required to make to your spouse
or former spouse, or on behalf of that spouse. For additional information,
refer to Tax Topic 452, Alimony Paid (this topic covers alimony
under decrees or agreements after 1984); and Publication 504, Divorced
or Separated Individuals .
References:
4.5 Interest/Dividends/Other Types of Income: Alimony, Child Support, Court Awards, Damages
Are alimony payments considered taxable income?
Alimony, separate maintenance, and similar payments from your spouse or
former spouse are taxable to you in the year received. The amount is reported
on line 11 of Form 1040 (PDF). You cannot use Form 1040A (PDF) or Form 1040EZ (PDF).
Refer to Tax Topic 406, Alimony Received, or Publication 504, Divorced
or Separated Individuals.
To help determine if these payments are or are not alimony, please read
the following:
The following rules apply to payments under divorce or separation instruments
executed after 1984. They also apply to instruments that were modified after
1984 to:
(1) Specify that these rules will apply or
(2) Change the amount or period of payment or to add or delete any contingency
or condition.
For the rules for alimony payments under pre-1985 instruments, please see Publication 504, Divorced or Separated Individuals.
A payment to or for a spouse or former spouse under a divorce or separation
instrument is alimony, if the spouses do not file a joint return with each
other, if the following conditions are met:
(1) The payment must be made by cash, check, money order, etc.
(2) The instrument does not designate the payments as "not alimony."
(3) The spouses are not members of the same household at the time the payments
are made.
(4) There is no liability for payments after the death of the recipient
spouse.
(5) The payment is not treated as child support.
For an explanation of these requirements please see, Publication 504, Divorced
or Separated Individuals.
References:
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