Is Tax on alimony payment deductible on federal tax forms?

In the vast majority of cases it is possible to deduct tax on alimony payment in Florida or any other state on federal income tax forms. However, it is essential to understand what is considered to be alimony, which is deductable, and what is not considered to be tax deductable. Alimony must be stated as such in the court order and tax deductions are not possible for property settlement payment amounts or child support ordered through the court or made on a voluntary basis.

You can deduct the specifically named alimony if you are required to pay from your gross income on the federal income tax form. It can only be claimed in the year it was paid but modifications and exceptions can and do occur based on specific issues. Typically the alimony must be paid in cash, not in property or other compensation forms, it must be court ordered and not voluntary, and you and your divorced partner cannot cohabitate in the year the payments were made and the tax deduction claimed. In addition your ex-spouse must report the alimony as taxable income within the year it was paid or your return may be flagged for further investigation and possible audit.

There are several specific rules and forms required for claiming a tax deduction for alimony. Working with an experienced attorney in family law issues is the best way to get the deductions you are eligible for without making any mistakes on your federal income tax form.