If you are anticipating the divorce process, multiple concerns may be on your mind. For example, you may be worried about paying or receiving child support or going through a possible custody dispute. In Naples, and across Florida, spousal support can be especially challenging for some couples and additional responsibilities may arise because of alimony. With the arrival of tax season, it is very important to understand any divorce-related obligations you may have with the Internal Revenue Service.
According to the IRS, spousal support payments must be reported by those who receive them as part of their personal income. If you receive alimony, it is vital to report all the payments you received over the course of the tax year in order to avoid running into problems with the IRS. Furthermore, if you have to make spousal support payments, you should also realize that these payments are deductible.
Having said that, you should also understand that certain conditions must be satisfied for payments to be considered spousal support by the IRS. Payments that are seen as property settlements or child support, along with those made through an unacceptable payment method, are not considered alimony by the IRS.
Whether you are responsible for paying alimony to your former spouse or receive these payments each month, you should make sure that you take care of these responsibilities as required. Also, keep in mind that this post is offered for general informational purposes and is not to be interpreted as an alternative to legal recommendations.