Confirm Alimoney paid not deductible

[taxiowa]

Software does deduct alimony paid.  The 1040 postcard does not show deductions for AGI.  They are simply a deduction between line 6 and line 7 of the 1040 with no reference to what the deduction is for.   Kinda like an IRA contribution.  

[abctax55]

Ah....didn't *think* of that.  But then, I reconcile to the numbers shown on the tax summary, and know in advance whether that alimoney (sic) is deducted in arriving at the total income figure.

[itonewbie]

I dislike the "postcard" with a passion.

[The-Tax-Lady]

ditto

[sjrcpa]

and yet only one client has commented on this. Goes to show how closely a lot of folks look at their tax returns. The lady who did comment always goes over every line and schedule.

[TAXOH]

I showed it to a few of my clients and I think they thought it has always looked this way.

[IRonMaN]

None of mine every make it past the cover letter showing them the refund or balance due.  Maybe if I converted the letter to the postcard look they might notice a change.

[TAXOH]

Mine don't either.  I opened it up for them and was pointing out things on it just to see if they would say anything about it being different and no one did.

[IRonMaN]

Because it was probably the first time they ever saw what a tax return looked like :smile:

[TAXOH]

:joy:

[garman22 · Accepted solution]

I confirm that you need to research that one. 

[simplicity]

Is this sarcasm or is it a legitimate reply. Thank You

[abctax55]

Did you give Mike the no vote ??
It's a very legit reply.

[garman22]

@simplicity my reply was legitimate and sarcastic. I thought you were a DIY'er so I told you to research. There are so many DIY's that find their way in here. Intuit's door allows too many in here.

[rbynaker]

simplicity's been around a while.  I usually hover my mouse over the name and see if it's a one-hit wonder.

The alimony changes of TCJA don't take effect until 2019.  So for 2018 you're still using all of the old rules of alimony vs. child support vs. division of assets.

[abctax55]

therefore PEBCAK?

[simplicity]

Simple answer. Thank You All.

[abctax55]

Sooooo   -  It IS deductible/taxable in 2018.

Your OP was "confirm not deductible".

Is it now showing as deductible on your client's return?  I just like to close the loop

[abctax55]

Depends....

[simplicity]

No info on IRS website. Software is not allowing it.

[abctax55]

Did you give Mike the no vote?

[simplicity]

No simple answer obviously. I appreciate everyone that replies to my questions. Just looking for an easy yes or no answer but that seldom happens. Thanks all. I'll do my own research

[abctax55]

The date of the divorce decree is important.
I seriously doubt that PS has a spot to enter that (Lacerte doesn't).
You as the preparer determines whether to enter it or not (if deductible or not..)
I suspect if the software isn't allowing it (even tho you entered it) then there's a date entry error.

[Just-Lisa-Now-]

@simplicity  if you open any web browser and type in:

alimony 2018 deductible

You'll find a slew of articles discussing whether or not its deductible 2018.

[abctax55]

Here just one of many, many found by a simple google search:

https://www.muellercpa.com/newsletters/tax-law-ends-alimony-deductions-2018