${site.data.firmName}${SEMFirmNameAlt} Main Menu
Call Today: 855-805-0595

Tax court says no alimony deduction without formal agreement

19467641_S.jpgIn a Missouri divorce settlement, a person might agree to pay alimony to a former spouse. That alimony is usually tax-deductible, but it is important that it be mentioned in the formal divorce agreement. Otherwise, according to the U.S. Tax Court, it is not deductible.

In the case that the Tax Court heard, a man filed for divorce in 2007 and signed an agreement with his wife regarding splitting with her a bonus he had received in 2006. Later, as part of a temporary support agreement, he agreed to pay his wife $3,270 monthly and an additional percentage of income that went above a certain monthly level. The man filed a tax return and claimed this as alimony as well as the portion of the bonus, but the IRS challenged the deduction, and he was ultimately not allowed to take it.

To claim an alimony deduction, it is also necessary for the two people to be living separately. The agreement must not state that the alimony is nontaxable and nondeductible, and the alimony must end on the recipient's death.

Spousal support is one of several elements that may need to be negotiated in a divorce. People might also need to negotiate child custody, child support and property division. A couple can make an agreement with the assistance of their attorneys that a judge can then make legally binding as long as there are no issues with the agreement such as a violation of state law. Litigation can be an adversarial process rather than a cooperative one, so people might be happier with an agreement reached in this way. In some cases, a couple may reach agreement on some issues but may need to resolve others in court or through mediation.

No Comments

Leave a comment
Comment Information

Contact Our Team To Get Help Now

Tell us about your case and we’ll get back to you promptly.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Stange Logo

Stange Law Firm, PC
1506 Chapel Hill Rd
Suite H
Columbia, Missouri 65203

Toll Free: 855-805-0595
Fax: 314-963-9191
Law Office Map

DHQ | Divorce Headquarters Divorce
Headquarters ® App Download The App
Questions? Live Chat Pay Your Bill Online
States of Service

Other Office Locations

  • Saint Louis County: 120 S. Central Ave., Suite 450, Clayton, MO 63105: Clayton Office
  • West County: 16024 Manchester Rd., Suite 103, Ellisville, MO 63011: Ellisville Office
  • Jackson County: 256 NE Tudor Rd., Lee's Summit, Missouri 64086: Lee's Summit Office
  • Jefferson County: 16 Municipal Drive, Suite C, Arnold, MO 63010: Arnold Office
  • St. Charles County: 2268 Bluestone Drive, St. Charles, MO 63303: St. Charles Office
  • Franklin County: 5 S. Oak St. Union, MO 63084: Union Office
  • Lincoln County: 20 Centerline Drive, Troy, Missouri 63379: Troy Office
  • Boone County: 1506 Chapel Hill Rd., Suite H, Columbia, MO 65203: Columbia Office
  • Greene County: 901 E. St. Louis, Suite 404, Springfield, Missouri 65806: Springfield, MO Office
  • St. Clair County: 115 Lincoln Place Ct., Ste. 101, Belleville, IL 62221: Belleville Office
  • Madison County: 5 Club Centre Ct., Suite A, Edwardsville, Illinois 62025: Edwardsville Office
  • Sangamon County: 400 S. 9th St., Suite 100, Springfield, IL 62701: Springfield Office
  • McLean County: 1012 Ekstam Drive, Suite 4, Bloomington, IL 61704: Bloomington Office
  • Johnson County: 7300 West 110th Street, Suite 560, Overland Park, KS 62210: Overland Park Office
  • Sedgwick County: 2024 N. Woodlawn Street, Suite 407, Wichita, Kansas 67208: Wichita Office
  • Shawnee County: 800 SW Jackson Street, Suite 812, Topeka, Kansas 66612: Topeka Office
  • Tulsa County: 6660 S. Sheridan Road, Suite 240, Tulsa, Oklahoma 74133 Tulsa Office
  • Monroe County: 116 W. Mill St., Waterloo, IL 62298 (by appt. only): Waterloo Office
  • St. Louis City: 100 S. 4th St., #549, St. Louis, MO 63102 (by appt. only): St. Louis Office
  • Jackson County: 2300 Main St., #948, Kansas City, MO 64108 (by appt. only): Kansas City Office

The choice of a lawyer is an important decision & should not be based solely upon advertisements. See additional disclaimers here.