Question

Issue a 1099 to former ex spouse for Military retirement

Forum|Forum|4 years ago
May 4, 2022
2 replies
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I have been paying an ex spouse a portion of my military retirement and need to issue her a 1099 and amend my tax return to reflect that? Turbo Tax does not mention or allow anywhere I can insert that in my amended return? How do I amend my tax return to reflect what I have paid her for 2021 and also previous years?

TurboTax Basic Windows

DoninGA

Employee

Doesn't she already receive a Form 1099-R from DFAS for income from your pension?

Or have you been paying her directly?

D

DG47Author

I have been paying her directly.

DoninGA

Employee

@DG47 wrote:

I have been paying her directly.

To enter alimony paid -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Other Deductions and Credits
On Alimony Paid, click the start or update button

Or enter alimony paid in the Search box located in the upper right of the program screen. Click on Jump to alimony paid

Alimonies for divorces and separations finalized after 2018 are no longer taxable or deductible.

PaulD CPA

You are correct that, in this situation where DFAS will not pay your ex-spouse directly, you should issue a 1099-R to your ex-spouse. Here's where the IRS advises that: General Instructions for Certain Information Returns (2024)

Intuit does not support the issuance of 1099-R forms. A couple of service providers that do support the issuance of 1099-R forms are TaxBandits and Tax1099 (not an endorsement).

Ideally, the subtraction for the amount you paid to your ex-spouse would be reported on Schedule 1, Line 24z - Other Adjustments.

If using TurboTax Desktop, switch to Forms Mode and on the 1040/1040SR WKS, look for Other Adjustments to Income Smart Worksheet, Line G and enter Nominee 1099-R and the amount (as a positive value).

TurboTax Online does not currently support this. Instead, you would need to enter it as Other Miscellaneous Income with a negative amount. Within the Miscellaneous Income, Other reportable income topic, answer YES to the question that asks Any Other Taxable Income? Enter 1099-R Nominee and a negative amount. It's going to be reported on Schedule 1, Line 3z - Other Income (as a negative). Not ideal, but accomplishes the reduction of your total income.

Beware, if you have a state return that provides special treatment for retirement income, make sure it's not excluding / subtracting more than your portion of the DFAS 1099-R amount. This may require overrides using TurboTax Desktop.

It literally will take an act of congress to get DFAS to honor QDROs for marriages of less than 10 years. Here's an excerpt of a DoD recommendation to Congress from 1999, which to this day, hasn't been acted upon.