1. Child Support: Not Deductible to the Payer and Non-Taxable to the Recipient.
2. Alimony Paid: If the Alimony payments are made under a Divorce or Separation Decree or Separation Agreement, they can be deducted as Alimony for Federal Tax Purposes.
3. Alimony Received: Spousal Alimony is taxable in the Year received. So Plan for additional Taxes or make additional Estimated Tax Payments to avoid the Tax Surprise.
4. Spousal IRA: If there is a Final decree of Divorce or Separate Maintenance by the Year end, you can't deduct the Contribution made to the Former Spousal's Traditional IRA. However, you can deduct Contribution to Your own IRA.
5. Name Changes - If you change your name after your Divorce, notify Social Security Administration about the change. Fill out Form SS-5. Your name on the Tax Return must match the SSA records. A name mismatch can delay tax refund.
For Q & A Contact : Kash, (925) 963 4891 @ Yajnik & Mehta Associates (YMA)
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