alimony

[grandmabee]

devorce decree said he pays 500 a month in alimony and has to give her 700 a month thru QDRO of his pension. his pension took so long in getting the paper work thru he paid her directly form the pension until it was switched over for the pension to pay her directly. his 1099R shows the full amount execept for the 2 mos they did right. 10 months he paid.

can I count the QDRO amount as alimony paid.

[Terry D EA]

Just off the top of my head, alimony paid is deductible regardless of where the funds were obtained to pay it. My question is how is this coded on the 1099R? Does this fall under one of the exception categories that eliminate the 10% penalty and additional tax? Without further research, I would say yes but it will be interesting to see what others say

[grmy2h]

I would agree... Payments to or for a spouse or former spouse under a divorce or separation instrument is alimony, unless the document specifies that it is not alomony, such as child support.

[grandmabee]

no child support. no minor kids. its a federal pension. so its normal but on bottom there is a * saying they paid spouse $$$ for the month when it was switched over.

part of the divorce was he paid the 500 per month alimony and she got 700. a month of his pension. it was the federal gov. who took too long to swith it over the correct way.

[kcjenkins]

Take the amount he paid directly as alimony, she should get a 1099R for her pension payments in future. But as long as it shows up in his 1099R take it as alimony.

[BulldogTom]

I don't see it that way (but this is off the top of my head, un-researched).

I would say the pension is a division of marital assets and therefore NOT alimony.

Again, just my two unresearched cents. (where is Jainen when you need him?)

Tom

Lodi, CA

[kcjenkins]

Darn it Tom, you just make too much sense! I think YOU are right, and I was wrong. What I get for firing that off without really thinking about it. Effectively, he just made her a loan until she got her pension payments started, so he might try convincing her to repay him, or to allow it against future alimony payments. [Yeah, good luck with that, right?]

[grmy2h]

The agreement should say if it is a division of marital assets.... and if that's the case, definately not alimoney. Have him bring the agreement in.

[grandmabee]

I don't see it that way (but this is off the top of my head, un-researched).

I would say the pension is a division of marital assets and therefore NOT alimony.

Again, just my two unresearched cents. (where is Jainen when you need him?)

Tom

Lodi, CA

that is what I kept thinking but then it seems unfair to pay tax on something he did not get to keep....but who ever said taxes were fair

[Jack from Ohio]

that is what I kept thinking but then it seems unfair to pay tax on something he did not get to keep....but who ever said taxes were fair

Whoever said divorce decrees were fair?

[kcjenkins]

Actually, while taxes are often unfair, in this case, if he got the money paid to him, and he turned around and paid her, he had the income, so he has the tax. Actually, his mistake was in paying her from his funds, instead of just telling her she'd have to get that money from the pension, not from him.

[BulldogTom]

Nice guys finish last. We don't have the agreement or all the facts, so this is just speculation. But in general, the split of a retirement account is normally a division of marital assets. If he did like KC is assuming he did, he just gave her his taxable income. It is a gift to her from him unless he wants to go back to court and try to get it back.

Without more details, I am sticking by NOT alimony.

Tom

Lodi, CA

[jainen]

>>I am sticking by NOT alimony<<

Me too. He did the decent thing in not making her wait for the QDRO, but he can't expect the government to reimburse him. That extra money was NOT paid as alimony according to the decree.