1099-G from Joint Return Received after Divorce

The rule is that you have taxable income from this refund only to the extent that you had a tax benefit from it.

If you are convinced you received only half the benefit and she received the other half, you can claim half and convince her to claim the other half. If you cannot convince her to claim the other half, you will have a fight on your hands. The IRS wants its share of that income and if you can't agree, there's no reason why the IRS would not to try to get it all from you.

Except, Art, I think Loosana is one of those communistic states. Might that make a difference?

ChEAr$, Harlan

On your return you should pick up the entire refund as income on Form 1040, Line 10.

Then on Line 21 back out the portion that belongs to your ex and include a brief description, her name and SSN should be sufficient.

This way you've picked up ALL that was reported to you so you avoid the "not reporting" issue AND you back off the part that belongs to her and identify her so they can trace it to her return - the rest is on her.

Good luck, Gene E. Utterback, EA, RFC, ABA

P.S. - While I believe this info is good, it is worth every penny you paid for it!

Since the 1099-G has both our names and SSNs on it, why would the IRS try to get it from only me instead of from both of us?

Here's a little more info that may or may not make any difference in your answer: We had a prenup that declaired us separate in property. I'm a Real Estate Professional who had enough investment property losses and depreciation (properties in my name only) that our taxable income was zero. Had it not been for those losses, my ex definately wouldn't have received 100% of her W-2 withholdings.

Gene E. Utterback, EA, RFC, ABA wrote: [...]

My only quibble is that the allocation should be shown on Line 10. For example, in a community property state such as California, if spouses file separately, they are expected to maintain the nature of each type of community income by documenting the split on *each* line of the 1040 (wages, interest, etc) -- you should *not* combine all the adjustments on line 21.

It is not unusual for the taxable state tax refund reported on Line 10 to not match the amount on the 1099-G, often with only a worksheet in the taxpayer's records to back it up. So that issue alone should not be a reason to "flag an audit".

-Mark Bole

...And what did your divorce decree say about this?

(If it was silent, then you should sue your lawyers for malpractice!)

There is no specific mention of it. No one thought of it since it was such an unusual circumstance. I didn't receive the 1099-G until 1/15/09.

I called my attorney after checking the decree; he suggests that I report

100% and try to get my ex to reimburse 50% of the additional tax liability.

Time for me to add to the thread. If I were preparing your return, I would simply place half of the amount on the 1040 page one line for state tax refund. In my experience, IRS never has and IMO never will take you to task for the other 50%. and that's a fact.

ChEAr$, Harlan Lunsford, EA n LA

Future tax issues and other contingencies should ALWAYS be included in a divorce agreement or decree.

I agree with Harlan - meaning that your attorney is a tax idiot.

When I read and then re read your line above, it seems that the attorney is a tax idiot beCAUSE you agree with me.

I'm thrilled, D! (grin

I think.

hmmm.. maybe.

Oh whattheheck? it's happy hour. It's been a rather taxing day.

Finding out that although client is entitled to the added 600$ Recovery rebate credit, IRS has decreed now NOT to put it on the 1040. GAAaAAAAHHH!

ChEAr$, Harlan

GAAaAAAAHHH!

Then what is line 71 for?

"Rick Hess" wrote

Many thanks to those who responded.

Of course that is what it is for. IRS in it's finite wisdom designed the form 1040 correctly. But..... now they're saying don't fill it in if a positive figure. They will do the math and issue a separate refund.

makes you wonder.

ChEAr$, Harlan Lunsford, EA n LA

After your first post, I went to their web site and looked under the "news" category - and found no such information.

6065,00.htmlPage titled: Recovery Rebate Credit Information CenterPage Last Reviewed or Updated: January 16, 2009 If this is true, not even the IRS has it on their site yet.

All of which has changed as of yesterday afternoon. See my and Alan's separate posts.

Tomorrow? Well I just don't know. Like Scarlett O'hara,

"I'll worry about that tomorrow."

ChEAr$, Harlan Lunsford, EA n LA