Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Taxact Com 2011

Free Tax ExtensionsSelf Employment TaxFree 1040ez Tax FilingCan I Still File 2012 TaxesIrs Form 4868Free Tax Help For SeniorsHow To File An Amended Tax Return For 2012File Taxes Online Free2012 1040 EzForm 1040sFile Taxes Previous YearStandard Deduction For Form 1040Turbotax 2011Ammended Tax Return2010 Tax Return OnlineFiling Tax AmendmentsFederal Tax Income ReturnFree Filing State Income TaxFile 2011 Taxes FreeState Tax Free FileIncome Tax Forms 20122009 Tax Return FormsFree File Taxes 20112010 Tax FilingInstructions For Form 1040ezTax Forms For Self EmployedFree Military Tax FilingState Taxes For MilitaryH And R Block Tax Estimator2009 State Tax FormsWhere Can I Get A 1040x Tax Form2010 Amended Return2011 Federal Tax FormsFree Tax Filing MilitaryHow To File An Amended 2011 Tax ReturnHow To File A Tax Amendment OnlineEasy 1040H&r Block Free Tax Returns1040ez Tax Forms To PrintIrs 2009 Tax Forms

Taxact Com 2011

Taxact com 2011 11. Taxact com 2011   Departing Aliens and the Sailing or Departure Permit Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Aliens Not Required To Obtain Sailing or Departure Permits Aliens Required To Obtain Sailing or Departure PermitsGetting a Sailing or Departure Permit Forms To File Paying Taxes and Obtaining Refunds Bond To Ensure Payment Filing Annual U. Taxact com 2011 S. Taxact com 2011 Income Tax Returns Introduction Before leaving the United States, all aliens (except those listed under Aliens Not Required To Obtain Sailing or Departure Permits must obtain a certificate of compliance. Taxact com 2011 This document, also popularly known as the sailing permit or departure permit, is part of the income tax form you must file before leaving. Taxact com 2011 You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. Taxact com 2011 These forms are discussed in this chapter. Taxact com 2011 To find out if you need a sailing or departure permit, first read Aliens Not Required To Obtain Sailing or Departure Permits . Taxact com 2011 If you do not fall into one of the categories in that discussion, you must obtain a sailing or departure permit. Taxact com 2011 Read Aliens Required To Obtain Sailing or Departure Permits . Taxact com 2011 Topics - This chapter discusses: Who needs a sailing permit, How to get a sailing permit, and Forms you file to get a sailing permit. Taxact com 2011 Useful Items - You may want to see: Form (and Instructions) 1040-C U. Taxact com 2011 S. Taxact com 2011 Departing Alien Income Tax Return 2063 U. Taxact com 2011 S. Taxact com 2011 Departing Alien Income Tax Statement See chapter 12 for information about getting these forms. Taxact com 2011 Aliens Not Required To Obtain Sailing or Departure Permits If you are included in one of the following categories, you do not have to get a sailing or departure permit before leaving the United States. Taxact com 2011 If you are in one of these categories and do not have to get a sailing or departure permit, you must be able to support your claim for exemption with proper identification or give the authority for the exemption. Taxact com 2011 Category 1. Taxact com 2011   Representatives of foreign governments with diplomatic passports, whether accredited to the United States or other countries, members of their households, and servants accompanying them. Taxact com 2011 Servants who are leaving, but not with a person with a diplomatic passport, must get a sailing or departure permit. Taxact com 2011 However, they can get a sailing or departure permit on Form 2063 without examination of their income tax liability by presenting a letter from the chief of their diplomatic mission certifying that: Their name appears on the “White List” (a list of employees of diplomatic missions), and They do not owe to the United States any income tax, and will not owe any tax up to and including the intended date of departure. Taxact com 2011   The statement must be presented to an IRS office. Taxact com 2011 Category 2. Taxact com 2011    Employees of international organizations and foreign governments (other than diplomatic representatives exempt under category 1) and members of their households: Whose compensation for official services is exempt from U. Taxact com 2011 S. Taxact com 2011 tax under U. Taxact com 2011 S. Taxact com 2011 tax laws (described in chapter 10), and Who receive no other income from U. Taxact com 2011 S. Taxact com 2011 sources. Taxact com 2011 If you are an alien in category (1) or (2), above, who filed the waiver under section 247(b) of the Immigration and Nationality Act, you must get a sailing or departure permit. Taxact com 2011 This is true even if your income is exempt from U. Taxact com 2011 S. Taxact com 2011 tax because of an income tax treaty, consular agreement, or international agreement. Taxact com 2011 Category 3. Taxact com 2011   Alien students, industrial trainees, and exchange visitors, including their spouses and children, who enter on an “F-1,” “F-2,” “H-3,” “H-4,” “J-1,” “J-2,” or “Q” visa only and who receive no income from U. Taxact com 2011 S. Taxact com 2011 sources while in the United States under those visas other than: Allowances to cover expenses incident to study or training in the United States, such as expenses for travel, maintenance, and tuition, The value of any services or food and lodging connected with this study or training, Income from employment authorized by the U. Taxact com 2011 S. Taxact com 2011 Citizenship and Immigration Services (USCIS), or Interest income on deposits that is not effectively connected with a U. Taxact com 2011 S. Taxact com 2011 trade or business. Taxact com 2011 (See Interest Income in chapter 3. Taxact com 2011 ) Category 4. Taxact com 2011   Alien students, including their spouses and children, who enter on an “M-1” or “M-2” visa only and who receive no income from U. Taxact com 2011 S. Taxact com 2011 sources while in the United States under those visas, other than: Income from employment authorized by the U. Taxact com 2011 S. Taxact com 2011 Citizenship and Immigration Services (USCIS) or Interest income on deposits that is not effectively connected with a U. Taxact com 2011 S. Taxact com 2011 trade or business. Taxact com 2011 (See Interest Income in chapter 3. Taxact com 2011 ) Category 5. Taxact com 2011   Certain other aliens temporarily in the United States who have received no taxable income during the tax year up to and including the date of departure or during the preceding tax year. Taxact com 2011 If the IRS has reason to believe that an alien has received income subject to tax and that the collection of income tax is jeopardized by departure, it may then require the alien to obtain a sailing or departure permit. Taxact com 2011 Aliens in this category are: Alien military trainees who enter the United States for training under the sponsorship of the Department of Defense and who leave the United States on official military travel orders, Alien visitors for business on a “B-1” visa, or on both a “B-1” visa and a “B-2” visa, who do not remain in the United States or a U. Taxact com 2011 S. Taxact com 2011 possession for more than 90 days during the tax year, Alien visitors for pleasure on a “B-2” visa, Aliens in transit through the United States or any of its possessions on a “C-1” visa, or under a contract, such as a bond agreement, between a transportation line and the Attorney General, and Aliens who enter the United States on a border-crossing identification card or for whom passports, visas, and border-crossing identification cards are not required, if they are: Visitors for pleasure, Visitors for business who do not remain in the United States or a U. Taxact com 2011 S. Taxact com 2011 possession for more than 90 days during the tax year, or In transit through the United States or any of its possessions. Taxact com 2011 Category 6. Taxact com 2011   Alien residents of Canada or Mexico who frequently commute between that country and the United States for employment, and whose wages are subject to the withholding of U. Taxact com 2011 S. Taxact com 2011 tax. Taxact com 2011 Aliens Required To Obtain Sailing or Departure Permits If you do not fall into one of the categories listed under Aliens Not Required To Obtain Sailing or Departure Permits, you must obtain a sailing or departure permit. Taxact com 2011 To obtain a permit, file Form 1040-C or Form 2063 (whichever applies) with your local IRS office before you leave the United States. Taxact com 2011 See Forms To File , later. Taxact com 2011 You must also pay all the tax shown as due on Form 1040-C and any taxes due for past years. Taxact com 2011 See Paying Taxes and Obtaining Refunds , later. Taxact com 2011 Getting a Sailing or Departure Permit The following discussion covers when and where to get your sailing permit. Taxact com 2011 Where to get a sailing or departure permit. Taxact com 2011   If you have been working in the United States, you should get the permit from an IRS office in the area of your employment, or you may obtain one from an IRS office in the area of your departure. Taxact com 2011 When to get a sailing or departure permit. Taxact com 2011   You should get your sailing or departure permit at least 2 weeks before you plan to leave. Taxact com 2011 You cannot apply earlier than 30 days before your planned departure date. Taxact com 2011 Do not wait until the last minute in case there are unexpected problems. Taxact com 2011 Papers to submit. Taxact com 2011   Getting your sailing or departure permit will go faster if you bring to the IRS office papers and documents related to your income and your stay in the United States. Taxact com 2011 Bring the following records with you if they apply. Taxact com 2011 Your passport and alien registration card or visa. Taxact com 2011 Copies of your U. Taxact com 2011 S. Taxact com 2011 income tax returns filed for the past 2 years. Taxact com 2011 If you were in the United States for less than 2 years, bring the income tax returns you filed for that period. Taxact com 2011 Receipts for income taxes paid on these returns. Taxact com 2011 Receipts, bank records, canceled checks, and other documents that prove your deductions, business expenses, and dependents claimed on your returns. Taxact com 2011 A statement from each employer showing wages paid and tax withheld from January 1 of the current year to the date of departure if you were an employee. Taxact com 2011 If you were self-employed, you must bring a statement of income and expenses up to the date you plan to leave. Taxact com 2011 Proof of estimated tax payments for the past year and this year. Taxact com 2011 Documents showing any gain or loss from the sale of personal property and/or real property, including capital assets and merchandise. Taxact com 2011 Documents relating to scholarship or fellowship grants including: Verification of the grantor, source, and purpose of the grant. Taxact com 2011 Copies of the application for, and approval of, the grant. Taxact com 2011 A statement of the amount paid, and your duties and obligations under the grant. Taxact com 2011 A list of any previous grants. Taxact com 2011 Documents indicating you qualify for any special tax treaty benefits claimed. Taxact com 2011 Document verifying your date of departure from the United States, such as an airline ticket. Taxact com 2011 Document verifying your U. Taxact com 2011 S. Taxact com 2011 taxpayer identification number, such as a social security card or an IRS issued Notice CP 565 showing your individual taxpayer identification number (ITIN). Taxact com 2011 Note. Taxact com 2011   If you are married and reside in a community property state, also bring the above-listed documents for your spouse. Taxact com 2011 This applies whether or not your spouse requires a permit. Taxact com 2011 Forms To File If you must get a sailing or departure permit, you must file Form 2063 or Form 1040-C. Taxact com 2011 Employees in the IRS office can assist in filing these forms. Taxact com 2011 Both forms have a “certificate of compliance” section. Taxact com 2011 When the certificate of compliance is signed by an agent of the Field Assistance Area Director, it certifies that your U. Taxact com 2011 S. Taxact com 2011 tax obligations have been satisfied according to available information. Taxact com 2011 Your Form 1040-C copy of the signed certificate, or the one detached from Form 2063, is your sailing or departure permit. Taxact com 2011 Form 2063 This is a short form that asks for certain information but does not include a tax computation. Taxact com 2011 The following departing aliens can get their sailing or departure permits by filing Form 2063. Taxact com 2011 Aliens, whether resident or nonresident, who have had no taxable income for the tax year up to and including the date of departure and for the preceding year, if the period for filing the income tax return for that year has not expired. Taxact com 2011 Resident aliens who have received taxable income during the tax year or preceding year and whose departure will not hinder the collection of any tax. Taxact com 2011 However, if the IRS has information indicating that the aliens are leaving to avoid paying their income tax, they must file a Form 1040-C. Taxact com 2011 Aliens in either of these categories who have not filed an income tax return or paid income tax for any tax year must file the return and pay the income tax before they can be issued a sailing or departure permit on Form 2063. Taxact com 2011 The sailing or departure permit detached from Form 2063 can be used for all departures during the current year. Taxact com 2011 However, the IRS may cancel the sailing or departure permit for any later departure if it believes the collection of income tax is jeopardized by that later departure. Taxact com 2011 Form 1040-C If you must get a sailing or departure permit and you do not qualify to file Form 2063, you must file Form 1040-C. Taxact com 2011 Ordinarily, all income received or reasonably expected to be received during the tax year up to and including the date of departure must be reported on Form 1040-C and the tax on it must be paid. Taxact com 2011 When you pay any tax shown as due on the Form 1040-C, and you file all returns and pay all tax due for previous years, you will receive a sailing or departure permit. Taxact com 2011 However, the IRS may permit you to furnish a bond guaranteeing payment instead of paying the taxes for certain years. Taxact com 2011 See Bond To Ensure Payment , discussed later. Taxact com 2011 The sailing or departure permit issued under the conditions in this paragraph is only for the specific departure for which it is issued. Taxact com 2011 Returning to the United States. Taxact com 2011   If you furnish the IRS with information showing, to the satisfaction of the IRS, that you intend to return to the United States and that your departure does not jeopardize the collection of income tax, you can get a sailing or departure permit by filing Form 1040-C without having to pay the tax shown on it. Taxact com 2011 You must, however, file all income tax returns that have not yet been filed as required, and pay all income tax that is due on these returns. Taxact com 2011   Your Form 1040-C must include all income received and reasonably expected to be received during the entire year of departure. Taxact com 2011 The sailing or departure permit issued with this Form 1040-C can be used for all departures during the current year. Taxact com 2011 However, the Service may cancel the sailing or departure permit for any later departure if the payment of income tax appears to be in jeopardy. Taxact com 2011 Joint return on Form 1040-C. Taxact com 2011   Departing husbands and wives who are nonresident aliens cannot file joint returns. Taxact com 2011 However, if both spouses are resident aliens, they can file a joint return on Form 1040-C if: Both spouses can reasonably be expected to qualify to file a joint return at the normal close of their tax year, and The tax years of the spouses end at the same time. Taxact com 2011 Paying Taxes and Obtaining Refunds You must pay all tax shown as due on the Form 1040-C at the time of filing it, except when a bond is furnished, or the IRS is satisfied that your departure does not jeopardize the collection of income tax. Taxact com 2011 You must also pay any taxes due for past years. Taxact com 2011 If the tax computation on Form 1040-C results in an overpayment, there is no tax to pay at the time you file that return. Taxact com 2011 However, the IRS cannot provide a refund at the time of departure. Taxact com 2011 If you are due a refund, you must file either Form 1040NR or Form 1040NR-EZ at the end of the tax year. Taxact com 2011 Bond To Ensure Payment Usually, you must pay the tax shown as due on Form 1040-C when you file it. Taxact com 2011 However, if you pay all taxes due that you owe for prior years, you can furnish a bond guaranteeing payment instead of paying the income taxes shown as due on the Form 1040-C or the tax return for the preceding year if the period for filing that return has not expired. Taxact com 2011 The bond must equal the tax due plus interest to the date of payment as figured by the IRS. Taxact com 2011 Information about the form of bond and security on it can be obtained from your IRS office. Taxact com 2011 Filing Annual U. Taxact com 2011 S. Taxact com 2011 Income Tax Returns Form 1040-C is not an annual U. Taxact com 2011 S. Taxact com 2011 income tax return. Taxact com 2011 If an income tax return is required by law, that return must be filed even though a Form 1040-C has already been filed. Taxact com 2011 Chapters 5 and 7 discuss filing an annual U. Taxact com 2011 S. Taxact com 2011 income tax return. Taxact com 2011 The tax paid with Form 1040-C should be taken as a credit against the tax liability for the entire tax year on your annual U. Taxact com 2011 S. Taxact com 2011 income tax return. Taxact com 2011 Prev  Up  Next   Home   More Online Publications
Español

Advisory Council on Historic Preservation

The Advisory Council on Historic Preservation encourages the preservation of historic properties across the nation.

Contact the Agency or Department

Website: Advisory Council on Historic Preservation

E-mail:

Address: 1100 Pennsylvania Avenue NW
Suite 803, Old Post Office Building

Washington, DC 20004

Phone Number: (202) 606-8503

The Taxact Com 2011

Taxact com 2011 18. Taxact com 2011   Alimony Table of Contents IntroductionSpouse or former spouse. Taxact com 2011 Divorce or separation instrument. Taxact com 2011 Useful Items - You may want to see: General RulesMortgage payments. Taxact com 2011 Taxes and insurance. Taxact com 2011 Other payments to a third party. Taxact com 2011 Instruments Executed After 1984Payments to a third party. Taxact com 2011 Exception. Taxact com 2011 Substitute payments. Taxact com 2011 Specifically designated as child support. Taxact com 2011 Contingency relating to your child. Taxact com 2011 Clearly associated with a contingency. Taxact com 2011 How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule Introduction This chapter discusses the rules that apply if you pay or receive alimony. Taxact com 2011 It covers the following topics. Taxact com 2011 What payments are alimony. Taxact com 2011 What payments are not alimony, such as child support. Taxact com 2011 How to deduct alimony you paid. Taxact com 2011 How to report alimony you received as income. Taxact com 2011 Whether you must recapture the tax benefits of alimony. Taxact com 2011 Recapture means adding back in your income all or part of a deduction you took in a prior year. Taxact com 2011 Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. Taxact com 2011 It does not include voluntary payments that are not made under a divorce or separation instrument. Taxact com 2011 Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. Taxact com 2011 Although this chapter is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. Taxact com 2011 To be alimony, a payment must meet certain requirements. Taxact com 2011 Different requirements generally apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. Taxact com 2011 This chapter discusses the rules for payments under instruments executed after 1984. Taxact com 2011 If you need the rules for payments under pre-1985 instruments, get and keep a copy of the 2004 version of Publication 504. Taxact com 2011 That was the last year the information on pre-1985 instruments was included in Publication 504. Taxact com 2011 Use Table 18-1 in this chapter as a guide to determine whether certain payments are considered alimony. Taxact com 2011 Definitions. Taxact com 2011   The following definitions apply throughout this chapter. Taxact com 2011 Spouse or former spouse. Taxact com 2011   Unless otherwise stated, the term “spouse” includes former spouse. Taxact com 2011 Divorce or separation instrument. Taxact com 2011   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. Taxact com 2011 This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). Taxact com 2011 Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. Taxact com 2011 Payments not alimony. Taxact com 2011   Not all payments under a divorce or separation instrument are alimony. Taxact com 2011 Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained under Community Property in Publication 504, Payments to keep up the payer's property, or Use of the payer's property. Taxact com 2011 Payments to a third party. Taxact com 2011   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. Taxact com 2011 These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. Taxact com 2011 ), taxes, tuition, etc. Taxact com 2011 The payments are treated as received by your spouse and then paid to the third party. Taxact com 2011 Life insurance premiums. Taxact com 2011   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. Taxact com 2011 Payments for jointly-owned home. Taxact com 2011   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse, some of your payments may be alimony. Taxact com 2011 Mortgage payments. Taxact com 2011   If you must pay all the mortgage payments (principal and interest) on a jointly-owned home, and they otherwise qualify as alimony, you can deduct one-half of the total payments as alimony. Taxact com 2011 If you itemize deductions and the home is a qualified home, you can claim one-half of the interest in figuring your deductible interest. Taxact com 2011 Your spouse must report one-half of the payments as alimony received. Taxact com 2011 If your spouse itemizes deductions and the home is a qualified home, he or she can claim one-half of the interest on the mortgage in figuring deductible interest. Taxact com 2011 Taxes and insurance. Taxact com 2011   If you must pay all the real estate taxes or insurance on a home held as tenants in common, you can deduct one-half of these payments as alimony. Taxact com 2011 Your spouse must report one-half of these payments as alimony received. Taxact com 2011 If you and your spouse itemize deductions, you can each claim one-half of the real estate taxes and none of the home insurance. Taxact com 2011    If your home is held as tenants by the entirety or joint tenants, none of your payments for taxes or insurance are alimony. Taxact com 2011 But if you itemize deductions, you can claim all of the real estate taxes and none of the home insurance. Taxact com 2011 Other payments to a third party. Taxact com 2011   If you made other third-party payments, see Publication 504 to see whether any part of the payments qualifies as alimony. Taxact com 2011 Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. Taxact com 2011 Exception for instruments executed before 1985. Taxact com 2011   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. Taxact com 2011 A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. Taxact com 2011 A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. Taxact com 2011   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, get the 2004 version of Publication 504 at www. Taxact com 2011 irs. Taxact com 2011 gov/pub504. Taxact com 2011 Example 1. Taxact com 2011 In November 1984, you and your former spouse executed a written separation agreement. Taxact com 2011 In February 1985, a decree of divorce was substituted for the written separation agreement. Taxact com 2011 The decree of divorce did not change the terms for the alimony you pay your former spouse. Taxact com 2011 The decree of divorce is treated as executed before 1985. Taxact com 2011 Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. Taxact com 2011 Example 2. Taxact com 2011 Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. Taxact com 2011 In this example, the decree of divorce is not treated as executed before 1985. Taxact com 2011 The alimony payments are subject to the rules for payments under instruments executed after 1984. Taxact com 2011 Alimony requirements. Taxact com 2011   A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. Taxact com 2011 The payment is in cash. Taxact com 2011 The instrument does not designate the payment as not alimony. Taxact com 2011 Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. Taxact com 2011 There is no liability to make any payment (in cash or property) after the death of the recipient spouse. Taxact com 2011 The payment is not treated as child support. Taxact com 2011 Each of these requirements is discussed below. Taxact com 2011 Cash payment requirement. Taxact com 2011   Only cash payments, including checks and money orders, qualify as alimony. Taxact com 2011 The following do not qualify as alimony. Taxact com 2011 Transfers of services or property (including a debt instrument of a third party or an annuity contract). Taxact com 2011 Execution of a debt instrument by the payer. Taxact com 2011 The use of the payer's property. Taxact com 2011 Payments to a third party. Taxact com 2011   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. Taxact com 2011 See Payments to a third party under General Rules, earlier. Taxact com 2011   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. Taxact com 2011 The payments are in lieu of payments of alimony directly to your spouse. Taxact com 2011 The written request states that both spouses intend the payments to be treated as alimony. Taxact com 2011 You receive the written request from your spouse before you file your return for the year you made the payments. Taxact com 2011 Payments designated as not alimony. Taxact com 2011   You and your spouse can designate that otherwise qualifying payments are not alimony. Taxact com 2011 You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. Taxact com 2011 For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). Taxact com 2011 If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. Taxact com 2011   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. Taxact com 2011 The copy must be attached each year the designation applies. Taxact com 2011 Spouses cannot be members of the same household. Taxact com 2011    Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. Taxact com 2011 A home you formerly shared is considered one household, even if you physically separate yourselves in the home. Taxact com 2011   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. Taxact com 2011 Exception. Taxact com 2011   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. Taxact com 2011 Table 18-1. Taxact com 2011 Alimony Requirements (Instruments Executed After 1984) Payments ARE alimony if all of the following are true: Payments are NOT alimony if any of the following are true: Payments are required by a divorce or separation instrument. Taxact com 2011 Payments are not required by a divorce or separation instrument. Taxact com 2011 Payer and recipient spouse do not file a joint return with each other. Taxact com 2011 Payer and recipient spouse file a joint return with each other. Taxact com 2011 Payment is in cash (including checks or money orders). Taxact com 2011 Payment is: Not in cash, A noncash property settlement, Spouse's part of community income, or To keep up the payer's property. Taxact com 2011 Payment is not designated in the instrument as not alimony. Taxact com 2011 Payment is designated in the instrument as not alimony. Taxact com 2011 Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. Taxact com 2011 Spouses legally separated under a decree of divorce or separate maintenance are members of the same household. Taxact com 2011 Payments are not required after death of the recipient spouse. Taxact com 2011 Payments are required after death of the recipient spouse. Taxact com 2011 Payment is not treated as child support. Taxact com 2011 Payment is treated as child support. Taxact com 2011 These payments are deductible by the payer and includible in income by the recipient. Taxact com 2011 These payments are neither deductible by the payer nor includible in income by the recipient. Taxact com 2011 Liability for payments after death of recipient spouse. Taxact com 2011   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony, whether made before or after the death. Taxact com 2011 If all of the payments would continue, then none of the payments made before or after the death are alimony. Taxact com 2011   The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the liability for continued payments would end under state law. Taxact com 2011 Example. Taxact com 2011 You must pay your former spouse $10,000 in cash each year for 10 years. Taxact com 2011 Your divorce decree states that the payments will end upon your former spouse's death. Taxact com 2011 You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. Taxact com 2011 The death of your spouse would not terminate these payments under state law. Taxact com 2011 The $10,000 annual payments may qualify as alimony. Taxact com 2011 The $20,000 annual payments that do not end upon your former spouse's death are not alimony. Taxact com 2011 Substitute payments. Taxact com 2011   If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments before the death, the otherwise qualifying payments are not alimony. Taxact com 2011 To the extent that your payments begin, accelerate, or increase because of the death of your spouse, otherwise qualifying payments you made may be treated as payments that were not alimony. Taxact com 2011 Whether or not such payments will be treated as not alimony depends on all the facts and circumstances. Taxact com 2011 Example 1. Taxact com 2011 Under your divorce decree, you must pay your former spouse $30,000 annually. Taxact com 2011 The payments will stop at the end of 6 years or upon your former spouse's death, if earlier. Taxact com 2011 Your former spouse has custody of your minor children. Taxact com 2011 The decree provides that if any child is still a minor at your spouse's death, you must pay $10,000 annually to a trust until the youngest child reaches the age of majority. Taxact com 2011 The trust income and corpus (principal) are to be used for your children's benefit. Taxact com 2011 These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. Taxact com 2011 Of each of the $30,000 annual payments, $10,000 is not alimony. Taxact com 2011 Example 2. Taxact com 2011 Under your divorce decree, you must pay your former spouse $30,000 annually. Taxact com 2011 The payments will stop at the end of 15 years or upon your former spouse's death, if earlier. Taxact com 2011 The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. Taxact com 2011 For example, if your spouse dies at the end of the tenth year, you must pay the estate $150,000 ($450,000 − $300,000). Taxact com 2011 These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000 annual payments. Taxact com 2011 None of the annual payments are alimony. Taxact com 2011 The result would be the same if the payment required at death were to be discounted by an appropriate interest factor to account for the prepayment. Taxact com 2011 Child support. Taxact com 2011   A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation instrument is not alimony. Taxact com 2011 The amount of child support may vary over time. Taxact com 2011 Child support payments are not deductible by the payer and are not taxable to the recipient. Taxact com 2011 Specifically designated as child support. Taxact com 2011   A payment will be treated as specifically designated as child support to the extent that the payment is reduced either: On the happening of a contingency relating to your child, or At a time that can be clearly associated with the contingency. Taxact com 2011 A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child support. Taxact com 2011 Contingency relating to your child. Taxact com 2011   A contingency relates to your child if it depends on any event relating to that child. Taxact com 2011 It does not matter whether the event is certain or likely to occur. Taxact com 2011 Events relating to your child include the child's: Becoming employed, Dying, Leaving the household, Leaving school, Marrying, or Reaching a specified age or income level. Taxact com 2011 Clearly associated with a contingency. Taxact com 2011   Payments that would otherwise qualify as alimony are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following situations. Taxact com 2011 The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of majority. Taxact com 2011 The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children reaches a certain age from 18 to 24. Taxact com 2011 This certain age must be the same for each child, but need not be a whole number of years. Taxact com 2011 In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your child. Taxact com 2011   Either you or the IRS can overcome the presumption in the two situations above. Taxact com 2011 This is done by showing that the time at which the payments are to be reduced was determined independently of any contingencies relating to your children. Taxact com 2011 For example, if you can show that the period of alimony payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can overcome the presumption and may be able to treat the amount as alimony. Taxact com 2011 How To Deduct Alimony Paid You can deduct alimony you paid, whether or not you itemize deductions on your return. Taxact com 2011 You must file Form 1040. Taxact com 2011 You cannot use Form 1040A or Form 1040EZ. Taxact com 2011 Enter the amount of alimony you paid on Form 1040, line 31a. Taxact com 2011 In the space provided on line 31b, enter your spouse's social security number (SSN) or individual taxpayer identification number (ITIN). Taxact com 2011 If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. Taxact com 2011 Show the SSN or ITIN and amount paid to each other recipient on an attached statement. Taxact com 2011 Enter your total payments on line 31a. Taxact com 2011 You must provide your spouse's SSN or ITIN. Taxact com 2011 If you do not, you may have to pay a $50 penalty and your deduction may be disallowed. Taxact com 2011 For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Taxact com 2011 How To Report Alimony Received Report alimony you received as income on Form 1040, line 11. Taxact com 2011 You cannot use Form 1040A or Form 1040EZ. Taxact com 2011 You must give the person who paid the alimony your SSN or ITIN. Taxact com 2011 If you do not, you may have to pay a $50 penalty. Taxact com 2011 Recapture Rule If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. Taxact com 2011 If you are subject to this rule, you have to include in income in the third year part of the alimony payments you previously deducted. Taxact com 2011 Your spouse can deduct in the third year part of the alimony payments he or she previously included in income. Taxact com 2011 The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or a written separation agreement. Taxact com 2011 Do not include any time in which payments were being made under temporary support orders. Taxact com 2011 The second and third years are the next 2 calendar years, whether or not payments are made during those years. Taxact com 2011 The reasons for a reduction or end of alimony payments that can require a recapture include: A change in your divorce or separation instrument, A failure to make timely payments, A reduction in your ability to provide support, or A reduction in your spouse's support needs. Taxact com 2011 When to apply the recapture rule. Taxact com 2011   You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year. Taxact com 2011   When you figure a decrease in alimony, do not include the following amounts. Taxact com 2011 Payments made under a temporary support order. Taxact com 2011 Payments required over a period of at least 3 calendar years that vary because they are a fixed part of your income from a business or property, or from compensation for employment or self-employment. Taxact com 2011 Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments before the end of the third year. Taxact com 2011 Figuring the recapture. Taxact com 2011   You can use Worksheet 1 in Publication 504 to figure recaptured alimony. Taxact com 2011 Including the recapture in income. Taxact com 2011   If you must include a recapture amount in income, show it on Form 1040, line 11 (“Alimony received”). Taxact com 2011 Cross out “received” and enter “recapture. Taxact com 2011 ” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. Taxact com 2011 Deducting the recapture. Taxact com 2011   If you can deduct a recapture amount, show it on Form 1040, line 31a (“Alimony paid”). Taxact com 2011 Cross out “paid” and enter “recapture. Taxact com 2011 ” In the space provided, enter your spouse's SSN or ITIN. Taxact com 2011 Prev  Up  Next   Home   More Online Publications