233 W. Wilson Street, Batavia, IL, 60510
  • Home
  • Blog
  • IRS and Spousal Support | Kane County Divorce Attorney

IRS Rules Regarding Spousal Support

alimonyThe month of April may signal the arrival of spring, but it is also the deadline for most people to file their taxes. For couples who have gone through or are in the midst of a divorce, there are several issues which may come up that could have a significant issue on federal income taxes. One of those issues is spousal support, and unlike child support, spousal support is considered to be taxable income according to the Internal Revenue Service (IRS).

Under the tax laws, any payment that meets the falling criteria is considered to be spousal support and therefore, the receiving spouse needs to claim it as income on their tax return:

  • The spouses will be filing separate, not joint, tax returns;
  • The payments made by one spouse to the other are “cash” payments. It is important to note that payments can be made via checking account, bank check, or money order;
  • One spouse is making the payment to their former spouse;
  • The spouses do not live in the same residence while these payments are made;
  • The payments are separate from child support payments, and they also have nothing to do with any property settlement which may have been awarded to the spouse in the divorce settlement;
  • There is nothing in the divorce decree (or legal separation agreement) which specifies that the payments are not spousal support payments;
  • If the spouse receiving the payments dies, there is no legal requirement for the spouse who is paying to continue to make those payments.

Whereas the spouse who is receiving the spousal support is required to pay taxes, the spouse who is required to make those payments is allowed to use those funds as a tax deduction. In order to take the deduction, the IRS does require that the receiving spouse’s social security number be included. Their tax ID could also be used instead. If the paying spouse fails to provide either number, then the IRS could disallow the deduction. Refusal of the receiving spouse to give their social security number to the paying spouse could result in a tax penalty for the receiving spouse.

The complexities of taxes, not just in spousal support but in other areas of divorce settlements, can be overwhelming for those going through a divorce. This is why it is important to contact a skilled Kane County divorce attorney to advocate for you during negotiations and litigation if that becomes necessary.

 

Source:

https://www.irs.gov/taxtopics/tc452.html

Share this Post : Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInShare on TumblrEmail this to someone
This entry was posted in Spousal Maintenance and tagged , , , , , . Bookmark the permalink.

Comments are closed.

Contact Information         Map and Directions
    • Location

      233 W. Wilson Street
      Batavia, IL 60510

      Mon – Fri: 8AM – 5PM
      Weekends and evenings by appointment. All phone calls and emails promptly and personally responded to and advise if emergency.

      Phone: (630) 879-9090

      Follow us

      Facebook    Twitter    Google Plus    Our Blog

    • Contact us

      NOTE: Fields with a * indicate a required field.
      *
      *
      *
Illinois State Bar Association Kane County Bar Association
Serving Northern Illinois cities such as Algonquin, Aurora, Barrington Hills, Bartlett, Batavia, Big Rock, Burlington, Campton, Carpentersville, Dundee, East Dundee, Elburn, Elgin, Geneva, Gilberts, Hampshire, Huntley, Kaneville, Lily Lake, Maple Park, Montgomery, North Aurora, Plato, Sleepy Hollow, South Elgin, St. Charles, Sugar Grove, Virgil, Wayne, West Chicago, West Dundee, Yorkville, Afton, Clinton, Cortland, DeKalb, Franklin, Genoa, Hinckley, Kingston, Kirkland, Lee, Malta, Maple Park, Mayfield, Milan, Paw Paw, Pierce, Sandwich, Shabbona, Somonauk, South Grove, Squaw Grove, Sycamore, Victor, Waterman, Aurora, Big Grove, Boulder Hill, Bristol, Joliet, Kendall, Lisbon, Minooka, Montgomery, Oswego, Plainfield, Plano, Sandwich, Yorkville as well as Kane County, Kendall County and DeKalb County.
© 2015 Law Office of Van A. Larson, P.C. | 233 W. Wilson Street, Batavia, IL, 60510 | 630-879-9090     Disclaimer   |    Privacy Policy   |    Sitemap
Powered by OVC