Alimony Payment Question

[jmallard]

Hi Everyone,

I have a client who received a check (Dated Dec 23, 2007) in Dec 2007 for $7000.00 as some sort of settlement payment for Alimony. However, she did not cash the check until Jan 2008.

Is this still considered Alimony received in 2007 Tax Year?

Thanks.

Jerry

[SUE A.]

I WOULD THINKS SO. I WOULD ADD IT TO 07 IF IT WERE ME. SUE

[rfassett]

Under the "constructive receipt" rules, she had contol of the funds in 2007 (she chose to not cash the check). If it is income, it is 2007 income. In fact, cashing the check has nothing to do with the issue. She receive a negotiable instrument in 2007. End of story.

Ron

[Catherine]

Hi Everyone,

I have a client who received a check (Dated Dec 23, 2007) in Dec 2007 for $7000.00 as some sort of settlement payment for Alimony. However, she did not cash the check until Jan 2008.

Is this still considered Alimony received in 2007 Tax Year?

Thanks.

Jerry

Received in '07, counts in '07. Clients choice to not go to bank in '07 doesn't count.

Catherine

[kcjenkins]

Yep, it's income in 2007.

[jmallard]

Thanks for the responses

This was my thinking also - it is 2007 Income.

Guess I'm a big soft hearted guy - I was hoping it could go on 2008 Income because my client is a divorced lady with kids and having a hard time.

But, that's why I asked here - didn't want to make a big mistake on her taxes.

Thanks again.

Jerry