Question

ALIMONY PAID / CREDIT / Divorce decree language

Forum|Forum|6 years ago
February 19, 2020
1 reply
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My divorce decree was finalized prior to 12/31/2018 so I am allowed to claim the credit. The decree specifies a set dollar amount to pay each month for a fixed period of time. My last payment would be made in December of 2020. My question is : if I pay the remaining amount now in its entirety, rather than from now each month to December, can I still claim the credit ? i am getting conflicting advice as to whether this would not be in accordance with the decree - as the decree says " monthly payments " I want to be rid of the monthly payment and be done with it, but I don't want to lose the credit

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O

Opus 17

Employee

That's legal advice, we can't help you.

Money you pay that is more than the required alimony is not deductible as alimony. The question here is about timing, and you are just going to have to make your best guess and take your chances with the IRS, or seek a professional opinion, not free advice from random strangers on the internet.

Worth noting that the IRS will only need to investigate if you and your ex disagree -- if you report an alimony payment that does not match alimony income reported by your ex, the IRS will investigate both of you to see if you deducted too much or they reported too little. If you report the same amounts, the IRS won't have any reason to question the timing.

If you think your ex would try and claim that a lump sum paid in full is not alimony and not report it as taxable income, then you should either just keep making regular payments or get a paid professional opinion. (You can set up automated payments so you don't have to think about it.)

B

BubbaTaxesAuthor

Thanks OPUS 17. I don't want to pay more lawyer fees at $75 per 15 minutes. It will take 1 minute but the minimum charge is 15 minutes. I already pay directly into her checking account from my checking, its just getting that ping every month that the transfer has been made that is irritating. But instead of Opus 17, my favorite 4 Seasons song is Tell It To The Rain.