Ask Experts Questions for FREE Help !
Ask
    collegian's Avatar
    collegian Posts: 53, Reputation: 1
    Junior Member
     
    #1

    Mar 10, 2019, 11:42 AM
    Paid alimony in 2018 but divorced in 2019, can I claim on tax return?
    Hello,


    As the title states can I claim the alimony I paid in 2018 on my tax return?


    Also, the payments were made as gifts to my parents' account in a foreign country which was then transferred onto my ex-spouse as a check from their account so I'm not sure if it's still possible or not?


    Thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,778, Reputation: 846
    Senior Tax Expert
     
    #2

    Mar 10, 2019, 12:22 PM
    Alimony received is considered income and alimony paid is a deduction as an adjustment to income, even under the new tax law.
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
    Expert
     
    #3

    Mar 10, 2019, 12:46 PM
    The fact that you weren’t divorced until 2019 complicates this. Was there a divorce or separation agreement in place in 2018 that mandated the payment? Under the new tax law, alimony paid under divorce or separation agreements executed after Jan 1 2019 are NOT deductable. See: https://www.marketwatch.com/story/ne...ody-2018-01-23
    collegian's Avatar
    collegian Posts: 53, Reputation: 1
    Junior Member
     
    #4

    Mar 10, 2019, 01:16 PM
    @AtlantaTaxExpert
    My ex-spouse was an NRA. Further, does the IRS require proof that the funds I transferred were the ones used to make this one time payment?

    @ebaines
    Yes, the divorce was settled in a foreign country and required me to pay a one time alimony before the divorce was finalized.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,778, Reputation: 846
    Senior Tax Expert
     
    #5

    Mar 10, 2019, 01:21 PM
    They may, but as long as she had a SSN, it should not be a problem.
    collegian's Avatar
    collegian Posts: 53, Reputation: 1
    Junior Member
     
    #6

    Mar 10, 2019, 01:44 PM
    @AtlantaTaxExpert

    She didn't have a SSN
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,778, Reputation: 846
    Senior Tax Expert
     
    #7

    Mar 10, 2019, 02:53 PM
    That complicates matters, because the alimony payment to a non-resident alien is subject to 30% tax withholding. If you withheld the 30% as required and sent the withheld tax to the IRS, then the alimony is deductible.

    What is her native country?
    collegian's Avatar
    collegian Posts: 53, Reputation: 1
    Junior Member
     
    #8

    Mar 10, 2019, 07:00 PM
    India and no I didn't withhold 30%
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,778, Reputation: 846
    Senior Tax Expert
     
    #9

    Mar 10, 2019, 07:17 PM
    You have lucked out, because the U.S.-India Tax Treaty specifically states that alimony paid to a resident of India can be taxed ONLY by India. That being the case, there is no withholding requirement.

    You may want to have your return when you deduct the alimony to be prepared by an expert who has experience in this matter because Form 8833 will need to be filed to explain to the IRS that the alimony, which is deductible for you, is NOT taxable income for your ex-spouse.

    If you want my help, contact me at kempetax@gmail.com.
    collegian's Avatar
    collegian Posts: 53, Reputation: 1
    Junior Member
     
    #10

    Mar 10, 2019, 07:32 PM
    Thanks for the detailed explanation!

    How will I prove that the funds I sent to my parents were used in paying for the alimony? Also, technically I wasn't divorced in 2018 so I don't know if that presents any more complications?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,778, Reputation: 846
    Senior Tax Expert
     
    #11

    Mar 10, 2019, 08:29 PM
    If the divorce was NOT final prior to 2018, then you cannot deduct the alimony as ebaines said.
    collegian's Avatar
    collegian Posts: 53, Reputation: 1
    Junior Member
     
    #12

    Mar 10, 2019, 09:36 PM
    I'll try to re-visit it next year, not sure if it will still be valid or not though.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,778, Reputation: 846
    Senior Tax Expert
     
    #13

    Mar 10, 2019, 10:01 PM
    No problem!

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

I just got divorced and my x wants to claim my daughter on his tax returns [ 7 Answers ]

I got married in July 2012 and put in divorce papers on November 9 2012 we didn't have any kids together. Though we each had a child coming into the marriage. Now that we have split he wants to claim my biological daughter on his tax returns. Is that legal and can we claim our own kids on our tax...

I paid 10% penalty on myIRA,can I claim it on my tax return [ 2 Answers ]

I cashed in my IRA in 2010 and paid the 10% penalty and 10% tax-Can I claim the penalty on my tax return-I received a 1099r for the total amount paid,it does not separate the penalty from the tax.

Received gifts from my ex husband after we were divorced. Do I have to return them? [ 3 Answers ]

My ex husband is taking me to court for return of gifts he purchased for me AFTER we were divorced. Some of these include boots specifically for me, a chinchilla that is very much MY pet, puzzles, and a shop vac. He also wants money for things he paid for on my behalf such as plastic to winterize...

Can both (divorced) parents claim child for EIC [ 1 Answers ]

My daughter is a full time college student living away from home age 23. I paid over 50% of her living expenses in 2008 and she worked earning a little over $10,000. In 08. Her mother claimed her as a dependent as she has since our divorce over 10 years ago. I ented her as a Nondependant - Used for...


View more questions Search