How to Report Alimony Payment Received on Federal Tax Returns
When you get alimony payments from a former spouse, that money is reportable income for tax purposes and needs to be included as income on your federal form 1040 annually. Record-keeping is required to ensure alimony payments are properly claimed and, if necessary, taxes on it are paid. Alimony is awarded at the time of separation or divorce under a variety of circumstances.
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Things You'll Need
- Decree of divorce or separate maintenance
- Payment receipts
- IRS tax form 1040
- Calculator
Instructions
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Add up your receipts of payment, whether they were made in cash or by check or money order. Remember that child support payments are not taxable income to the person receiving them, and you should keep them out of the total of alimony payments received.
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Do not check the box to file jointly. If you are receiving alimony you may not file a joint return with your former or estranged spouse who is paying the alimony to you.
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Add the total amount of alimony received to "Line 11 -- Alimony Received" and include it in your calculations to determine your income tax obligation. IRS Form 1040A and Form 1040EZ cannot be used if you are claiming alimony as income.
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Make sure your former or estranged spouse has your Social Security Number to report to the IRS. This lets the IRS make sure you are both doing your part to fulfill the agreement, and ensures that the payer of the alimony can deduct it for tax purposes--and besides that, you can be fined $50 if you don't provide the information.
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Tips & Warnings
A spreadsheet kept updated throughout the year can take the hassle out of remembering how much alimony you received.
