Alimony

[ljhyer]

I have a client who made a change to his pre-2018 alimony.  The court order dated August 21 stipulated a change to the amount and an end date to further alimony AND further ordered that alimony "shall continue to be includable in income of the recipient and deductible by the payor"

Will the IRS honor this kind of agreement?  I'm not sure how to report this.

Opinions?

Thank you

[qbteachmt]

You can read articles that help, such as:

https://www.willicklawgroup.com/is-alimony-tax-deductible/

[qbteachmt]

Oh, I forgot the IRS link:

https://www.irs.gov/forms-pubs/clarification-changes-to-deduction-for-certain-alimony-payments-effec...

[ljhyer]

Thanks for reply.   What my question was less to do with the current tax law and more asking your thoughts on if the IRS honor that court order?  Either way the IRS is getting their tax dollars.....

My client is the payor so I'd really like to have something to justify claiming that alimony deduction

Thanks

[ljhyer]

Well, in my search for justification to claim the alimony deduction I am stopped by:  IRS requirements supersede a county or state court order

I believe I have my answer.  Thank you for you input!

[qbteachmt · Accepted solution]

"What my question was less to do with the current tax law and more asking your thoughts on if the IRS honor that court order?"

Both of the links I provided cover the issue of deductible or not, and the revision of an alimony order. Did you not read them?

If the initial alimony agreement falls in the rules that allowed for reporting as income and thereby also as deducted, then read the parts that cover if the judge included the wording regarding any change in that position.

[Terry53029]

@qbteachmt Seems like not many want to read or research, as your link provides an answer to the original question.

Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018. 

This also applies to a divorce or separation agreement executed on or before Dec. 31, 2018, and modified after December 31, 2018, as long as the modification:

• changes the terms of the alimony or separate maintenance payments; and
• states that the alimony or separate maintenance payments are not deductible by the payer spouse or includable in the income of the receiving spouse.

[qbteachmt]

🙂

[ljhyer]

Thanks, got it!  Read right over it................