Alimony

Mar 20, 2010 2 Replies

Alimony is an adjustment to income on 1040. Is the split on a retirement plan the same? If taxpayer is required to give up a percentage of the retirement income, is the amount reduced deducted the way alimony is handled?



tks all



bw


No, because it's never been included in income.

Phil Marti VITA/TCE Volunteer

"bh2os" wrote

If you cashed-in or received a distribution from the retirement plan, it's all income to you. That you used some of that to pay alimony gives rise to an alimony deduction, but you don't reduce the income amount, it's what you got.

You (or your attorney) should have split the retirement plan (if you could) at the time of the divorce under a QDRO. That's a tax free split. Distributions from the split plan would be taxable to her when she took them from her half, and taxable to you when you took them from your half.

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