Trial Lawyer Salary
When one spouse is financially dependent on the other Trial Lawyer Salary, he or she may be ordered to pay spousal support also known as alimony. Unless you and your spouse agree on a certain amount of support after the divorce, the judge will make the determination based on several factors including but not limited to;
The length of your marriage
Income of both individuals
The amount of financial dependence
The other spouses ability to produce an income
Paying and receiving spousal support affects your tax return regardless of which side you fall on Trial Lawyer Salary. The spouse who receives spousal support must claim the payments as income at the end of the year while the paying spouse can deduct these payments.
Tax Implications of Alimony
Unlike a paycheck, taxes are not deducted from alimony payments automatically. The receiving spouse may wish to make estimated tax payments periodically through the year. This can help to ease the burden of owing a large amount at tax time. If you currently receive an income in which taxes are regularly deducted, you can also choose to increase the amount taken out of your paycheck to cover any taxes that may be owed from spousal support payments.
The IRS has certain requirements in order for payments to be considered alimony such as:
Payments must be ordered by the court pursuant to a divorce agreement
Spouses live in separate residences when payments are made
Payments must be made by cash, check or money order
Payments made to the receiving spouse are not considered alimony if you are living together at the time the payments are made or if the payments are made voluntarily. Under these conditions, the paying spouse could not deduct the payments nor could the receiving spouse claim it as income Trial Lawyer Salary.
In the event the amount of support that is paid is terminated or is drastically reduced in the third year of making payments, you and your spouse may the recapture rule may apply. This rule may apply if:
Your divorce settlement has changed
Timely payments of support have not been made
The paying spouse can no longer provide the amount of support ordered
The receiving spouses income has increased and no longer needs the amount of support
In any of these instances, the paying spouse may be able to claim support payments that have been previously claimed on taxes. On the other hand, the receiving spouse would claim as income payments which were previously claimed in prior years In House Counsel.
Child support payments have very different tax implications than that of spousal support and cannot be claimed as income by the receiving party. The spouse who is order to pay child support also cannot claim these payments on his or her taxes at the end of the year. It is, however important that child support payments do not become delinquent. This could affect the amount of your tax refund. Meaning if you become behind on child support payments, it is quite possible your refund may be withheld to pay any child support owed to the receiving spouse.