Do you or your spouse pay alimony? I'm having a HUGE problem with the IRS.

United States
January 16, 2008 2:10pm CST
We pay 1000 a month in alimony to my husbands ex-wife. We have always claimed it on our taxes. He has it taken directly from his paycheck every month (his choice). We got a notice from the IRS saying that we owed 600 because the alimony didn't count. We sent in a letter explaining that the deduction that is shown on his check stub as allotment was for alimony. We sent in proof that said allotment was going straight to HER bank account. We sent a copy of the divorce decree stating that he was to pay this amount for the period of 10 years. Yesterday I got a notice from them saying that the alimony doesn't count because the divorce is non-modifiable. What the heck does that have to do with anything? Do you pay alimony? Do you claim it on your taxes?
2 people like this
8 responses
@sedel1027 (17846)
• Cupertino, California
29 Jan 08
I don't pay alimony, but I would imagine that you should be able to claim in to your taxes. She should be the one paying taxing on this money since it is considered income for her. I really don't understand why you should pay the tax and she has to pay the tax unless they aren't taxing her?). As for your non-modifidable issue with the court system. I would find someone who knows about law loopholes and see if you really can't modify it because she just received that large lump someone of money. Usually alimony has limits, conditions or restrictions on them and I would think that inheriting such a large sum of money would affect her alimony.
1 person likes this
@sedel1027 (17846)
• Cupertino, California
30 Jan 08
How long does he have to pay alimony? Doesn't the IRS tax her on the alimony she receives as income?
1 person likes this
• United States
25 Feb 08
He has to pay her for 10 years! We will be totally done paying her in August of 2010. I think the reason we get audited every year for the alimony is becuase she doesn't claim it. I hired a tax advocate on Thursday and he is supposed to call me today. Wish me luck!
• United States
30 Jan 08
Her money has nothing to do with how much we pay because the divorce is non-modifiable. She could inherit a billion dollars and we still have to pay the 1000 a month to her. It totally reaks. When she got the 2 million, we took her to court to see if we could get a break in alimony and the judge said his hands were tied because it was non-modifiable.
@schilds (410)
• United States
27 Jan 08
I don't know what they are talking about non-modifiable divorce, but alimony is a deduction on your taxes (there is a line specifically for it - you need to include her ssn) and it is income on her taxes. Have you tried calling the IRS and asking a human to explain in plain english what they are talking about?
1 person likes this
• United States
29 Jan 08
Non-modifiable means that we can't take her to court to ask for a reduction in alimony (even though she just inherrited 2 million dollars!) and she can't ask us for more money (we live in a trailer in the middle of the woods). I'm still working on it. You can only call after 6 at night and I keep calling and getting sent to voice mail. She never calls me back.
• United States
30 Jan 08
Thanks schilds. I'm going to try writing another letter today since the lady won't call me back. Wish me luck!
@schilds (410)
• United States
29 Jan 08
Unless there is a stipulation in the divorce decree that she doesn't have to claim the alimony as income I don't see how the divorce being non-modifiable has anything to do with the IRS. If you cant get any answers from the IRS I would talk to a CPA or tax attorney.
1 person likes this
@josh33 (120)
• India
26 May 08
Did your issue get resolved?
1 person likes this
• United States
27 May 08
If you want to call having to pay resolved then, yeup, it's resolved. The tax advocate said that because it is a non-modifiable divorce that we can only claim the money on our taxes for 6 years and we have already claimed it for 6 years. So I guess we owe the money and we will have to pay the taxes on the remaining 4 years of alimony too!
@Ohara_1983 (4117)
• Kuwait
16 Jan 08
actaully i dont have any knowledge about those problem, because her in kuwait we are not paying taxes, this is very good for this place free of taxes, but in other country what i know is the more your salary is high the more you will pay taxes i dont know if this is true actually.
• United States
23 Jan 08
Yes, it is true that in the US we pay lots of taxes. The more money you make, the more taxes you pay.
@squaretile (3778)
• Singapore
24 Jan 08
I don't pay alimony. so i don't claim it on my taxes. I suppose it does make sense that alimony payments are tax deductible, since they are funds that are being channeled to another source, and not income earned per se. I hope this matter gets sorted out soon, and that you get good advice from mylotters who have similar experiences. all the best!
1 person likes this
• United States
29 Jan 08
Thanks. I'm still working on it. You can only call after 6 at night and I keep calling and getting sent to voice mail. She never calls me back.
@chrislotz (8137)
• Canada
25 Jan 08
I live in Canada and alimony here is not considered income to the person receiving it, so the person paying it can't claim it. The taxes have to be paid on that income so now the law is that the spouse paying the alimony has to pay it. This law changed about 10 years ago here. I don't know what the laws are in the States but you may want to look more deeply into it because it sounds to me like it is the same there as here.
1 person likes this
• United States
29 Jan 08
The laws in the US are that if it is Child Support then the person paying it pays the taxes on it. If it is alimony, the person receiving it pays the taxes.
@checapricorn (16061)
• United States
7 May 08
My husband has no kid with his ex so there is no alimony! He just offered a certain amount to help his ex financially for 2 years and this will be over this month!
• United States
7 May 08
Usually, alimony is tax deductible, its cs that's not tax deductible. Nonmodifiable means that the $1000 a month can't be lowered or raised. He should've paid attention to what he was saying in court and he should've made sure to state that the alimony would be tax deductible. If he didn't make sure of that, he won't get the money back from taxes. If the irs claims that the alimony doesn't count, why would your ex only owe $600? How long has your husband been paying alimony? Has your husband been claiming the alimony as tax deductible since he started paying? If it doesn't say that the alimony is nonmodifiable in the court papers, then when he files his taxes yearly, along with regular fed and state, unless the rebated alimony is included with the fed and state, he should be getting back $12000 a year just from alimony period. Your husband must make a lot of money to be able to afford to pay $1000 a month. Do you have any income?