Alimony = Taxable Income!!

Q. My divorce was finalized mid November…I do not work….how should my ex-husband and I file? We still live in the same house, although me and the kids upstairs, he downstairs…In our divorce decree, he gets to claim both kids as exemptions through 2010. As stated in the decree, he also must pay me temporary spousal support through Nov 2011.  Does this payment have to be claimed as a type of alimony paid or received …or does the fact that we still reside together in the same home exempt us from having to claim it either way? I guess the main question is how do we file for this year? How will I file beyond 2008, being as though I won’t work, but will receive child support/temp. spousal support, all the while living in the same home?

A. Oh what a tangled web we weave…(Sir Walter Scott)

Your case is a complicated one and you definitely need to find a competent tax professional in your area to go over the details of your case to prepare an accurate tax return. In the eyes of the IRS, if you are not married on December 31st, you were not married at all for the year. You would file either single or Head of Household although I believe you are not eligible for the latter.   Following is the definition of Read more »