The IRS has specific tax rules that govern the paying of alimony. One thing they are trying to avoid is divorcing couples dividing their property by calling it alimony so that the person with the higher tax bracket can get a tax deduction.
To avoid this, the IRS says that alimony should not drop from one year to the next by more than $15,000 within the first three years after divorce or they will not classify it as alimony. Then, the person who had been taking the deduction will have to re-capture all those tax deductions and pay them back to the IRS. This is called "Alimony recapture."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment