Tom Hodge CPA Blog

The IRS has announced areas that will be given extra scrutiny and one area is alimony (both paid and received).  My opinion is the updated IRS computer systems are able to match information between personal returns, like they have been able to with payroll info (W2, 1099 or 1098 forms, etc.).  With this cross-checking of info, discrepancies, such as alimony paid or received would be easier to spot and track.

Alimony (sometimes called spousal support) is a payment from one person to another for the maintenance (i.e. living expenses) of the recipient.  By law, alimony is income to the recipient, and a deduction to the payer.  The payer reports the amount of alimony as a deduction to their Total Income to arrive at Adjusted Gross Income (bottom third on the first page on form 1040 – shown below).  The recipient reports the money on line 11 on the form 1040…

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