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eTax.com Offers Tips on Reporting or Claiming Alimony Payments

 
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Drums, PA -- (SBWIRE) -- 02/28/2014 -- Unlike child support payments, alimony payments are considered to be taxable income. If someone received alimony (or “separate maintenance”) at any time during the tax year, individual must report the full amount received as income (line 11 on IRS Tax Form 1040), and it will be added to his/her AGI. Any child support amount someone received, even if it was collected in conjunction with alimony or maintenance payments, is non-taxable, and should not be reported.

“Be aware that the party paying alimony is expected to report both the full amount paid during the year and the social security number or tax ID number of the recipient.” explained Paul Stanley of eTax.com “In fact, alimony paid can be taken as a tax deduction, so it is unlikely that it will not be reported in full.”

According to the IRS, it is the receiving spouse’s responsibility to provide his or her Social Security number to the paying spouse so that it can be reported along with the amount of alimony they paid.

If someone paid alimony or maintenance to his/her ex, he/she will be able to take a deduction for these payments in most cases. Individual is not eligible for the deduction if he/she files a joint return with the party receiving alimony, or if he/she made the payments in cash (checks or money orders only, for the paper trail). An individual may also not be a member of the same household while making the payments.

About eTax.com
eTax.com was founded with the goal of helping people prepare and file their tax return quickly, easily and affordably. Since then, eTax.com has grown to become one of the most popular online tax preparation services. For more information about eTax.com, visit http://www.etax.com

Contact:
Paul Stanley
(855)ASK-ETAX