Information from IRS.gov
If you are divorcing or recently divorced you need to consider the impact divorce or separation may have on your taxes. Alimony payments paid under a divorce or separation instrument are deductible by the payer, and the recipient must include it in income. Name or address changes and individual retirement account deductions are other items to consider.
- Child Support Payments are not Alimony. Child support payments are neither deductible nor taxable income for either parent.
- Deduct Alimony Paid. You can deduct alimony paid under a divorce or separation decree, whether or not they itemize deductions on their return.
- Report Alimony Received. You need to report alimony received as income on Form 1040 in the year received. Alimony is not subject to tax withholding so it may be necessary to increase the tax paid during the year to avoid a penalty.
- IRA Considerations. A final decree of divorce or separate maintenance agreement by the end of the tax year means you can’t deduct contributions made to a former spouse’s traditional IRA. They can only deduct contributions made to their own traditional IRA.
- Report Name Changes. Notify the Social Security Administration (SSA) of any name changes after a divorce. A name mismatch can cause problems in the processing of a return and may delay a refund.
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