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Alimony-related tax concerns

On Behalf of | Jan 5, 2015 | Family Law |

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With the holiday season coming to an end, many Illinois residents are already looking ahead to tax season. And for those who have recently divorced, questions and concerns over taxes can be clouding their vision. No matter if you are the recipient or provider of spousal support according to the terms of your divorce decree, it is important to understand how federal tax guidelines may apply to you.

Discussing post-divorce tax implications, Forbes notes that alimony payments must be accounted for by both parties. The federal Internal Revenue Service mandates that alimony is considered a source of income, and is therefore subject to taxation. As the recipient of spousal support, you are required to report the full amount of alimony that you receive when you file your taxes. You are also required to provide your ex-husband or wife with your social security number so that he or she can claim deductions on your alimony.

If you are obligated to pay spousal support to your ex husband or wife, you are entitled to a tax deduction on that amount in many cases. As long as the support that you provide is not considered a property settlement or child support, it may be eligible for a tax deduction if you and your ex spouse do not live in the same household. Another important thing to keep in mind is that you cannot claim a deduction on the alimony that you pay if you file a joint tax return with your ex-husband or wife.

Other factors can affect how tax implications apply to the spousal support that you pay or receive. Consequently, this general information’s does not apply to every case and cannot be used as legal advice.



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