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divorce settlements

garyrogr
Level 1

A divorced TP must divide his pension with his exwife. His 1099-R shows the gross amount of the pension. Is there any way he can deduct half of it on his tax return or will he still have to claim the entire amount?

 

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IRonMaN
Level 15

If that is the way the money came out it is going to be fully taxable to him.  If his attorney arranged for it to happen that way rather than the ex get half of the amount paid directly to her, he really needs to find a better attorney the next time he gets divorced.


Slava Ukraini!

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3 Comments 3
IRonMaN
Level 15

If that is the way the money came out it is going to be fully taxable to him.  If his attorney arranged for it to happen that way rather than the ex get half of the amount paid directly to her, he really needs to find a better attorney the next time he gets divorced.


Slava Ukraini!
Camp1040
Level 11

The ex should be designated as an alternate payee and receive her portion directly from the pension administrator. It does sound like a proper QDRO was not created, and the reply by IRNM concerning a better attorney is sound advice.

abctax55
Level 15

If a QDRO wasn't set up, a conversation with the attorney AND his E&O insurance carrier is in order.

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