Are Pendent Lite payments tax deductable?

[SingleAZdad]

What is the name of your state? AZ

My divorce has been dragging out for over a year now. I have been making pendent lite payments to X for the duration of the separation. The initial agreement between our attorneys was to maintain a certain balance in her bank account, then the judge put clear guidelines on the level of support.

I know that alimony is tax deductable, but what about all the money over the last year? Does anyone know?

Thanks

 

[LdiJ]

What is the name of your state? AZ

My divorce has been dragging out for over a year now. I have been making pendent lite payments to X for the duration of the separation. The initial agreement between our attorneys was to maintain a certain balance in her bank account, then the judge put clear guidelines on the level of support.

I know that alimony is tax deductable, but what about all the money over the last year? Does anyone know?

Thanks

Maybe. You are not divorced, and you are in a community property state which makes it really complicated.

If your property settlement hasn't been done yet, and if any of the payment is also child support, then I would say no.

If you have a legal separation, and the property has already been specifically divided, and there is a clear delienation between child support and spousal support, then maybe its yes.

Get a consult with a local tax pro...with all paperwork in hand.

 

[TinkerBelleLuvr]

Here's a place to start:
http://www.irs.gov/faqs/faq-kw10.html

It's all in how it's worded in your paperwork ...

 

[SingleAZdad]

thx -

It sounds like the money I spent in the beginning of the year which was a verbal agreement may be difficult to deduct. The second half of the year, it was clearly stated how much was given for rent and utilities as well as living expenses for her. I have sole custody of the kids, so there is no child support.

Thanks again. I'll make certain to use a CPA instead of tax software this year.

 

[LdiJ]

thx -

It sounds like the money I spent in the beginning of the year which was a verbal agreement may be difficult to deduct. The second half of the year, it was clearly stated how much was given for rent and utilities as well as living expenses for her. I have sole custody of the kids, so there is no child support.

Thanks again. I'll make certain to use a CPA instead of tax software this year.

You don't have to use a CPA, any solidly experienced tax pro can help you.

 

[SingleAZdad]

You don't have to use a CPA, any solidly experienced tax pro can help you.

LdiJ - what do you mean by tax pro? Is that like the people working at HnR block?

 

[LdiJ]

LdiJ - what do you mean by tax pro? Is that like the people working at HnR block?

Sort of...H and R Block does have at least one enrolled agent in each office, so if you used someone like them you would want to ask for the enrolled agent.

However, if you loook for a local tax office that is open year round, that's usually where you will find the most experienced people.

 

[SingleAZdad]

Great, thanks for the advice. I keep good records and all my receipts, so should be in good shape.

 

[Bali Hai]

Maybe. You are not divorced, and you are in a community property state which makes it really complicated.

Complicated for WHO??

If your property settlement hasn't been done yet, and if any of the payment is also child support, then I would say no.

There was no mention of child support so stop the double talk!

If you have a legal separation,

Nothing inferred as to legal separation.

and the property has already been specifically divided,


I didn't hear that...


and there is a clear delienation between child support and spousal support, then maybe its yes.

Jesus H. Christ!!! How the h@ll do you come up with these WHAT IF''s???


Get a consult with a local tax pro...with all paperwork in hand.

Yes by all means have your paperwork in hand....

 

[LdiJ]

Yes by all means have your paperwork in hand....

Bali, I could have asked questions first, therefore delaying his receiving a response. Instead, I gave him a couple of scenarios.

I have finally figured out what you mean by "double talk", and you are off track.

 

[Bali Hai]

thx -

It sounds like the money I spent in the beginning of the year which was a verbal agreement may be difficult to deduct. The second half of the year, it was clearly stated how much was given for rent and utilities as well as living expenses for her. I have sole custody of the kids, so there is no child support.

Thanks again. I'll make certain to use a CPA instead of tax software this year.

You need a written legal instrument directing you to pay the alimony for the payments to be tax deductible. And the payments must be in cash directly to her. Paying rent or her utilities and other living expenses won't cut it.

I'm not a CPA, but you can make a contribution if you like.

 

[TinkerBelleLuvr]

You need a written legal instrument directing you to pay the alimony for the payments to be tax deductible. And the payments must be in cash directly to her. Paying rent or her utilities and other living expenses won't cut it.

Actually Bali, you are incorrect in this statement. If directed & stated as such in the court order, direct payment of such items can be considered alimony. It's how it is stated!

From the IRS website:

a payment under a written separation agreement, support decree or court order may qualify as alimony even if you are of the same household at the time of payment.

 

[SingleAZdad]

The current court order states specifically the dollar amounts that will be provided for her rent, utilities and living expenses. These are temporary orders, but have been in place for about 5 months. The court orders going back to the beginning of the year were more vague. They directed no change in standard of living. There was a verbal agreement that I would maintain a $500 balance in her checking account. She would typically spend 2k/month in cash. This didn't include any household bills. I paid all of those as well. It was pretty outrageous.

Fortunately, or unfortunately, depends on perspective, there has been a recent break in my case and the alimony issue may become moot. X and her boyfriend were caught in an identity theft scam with my personal information. The only reason I even discovered their involvement was because the local police phoned me when they picked up her boyfriend for Meth distribution and he had 4 of my credit cards in his pocket. He implicated my X directly.

My attorney filed motions yesterday. There is more to the story, as if this isn't enough. It's all fairly difficult to believe, but really did happen. I guess some people feel the need to hit rock bottom.

The upside is that I have had sole custody of the kids for the last 5 months, so they haven't been exposed to any of this. They miss their mother and she has court supervised visitation, but has not exercised her rights.

It would be nice if the payments I have been making are tax deductible. I have all the court documents as well as records of all bills paid directly on her behalf and all cash deposits to her account. The current temporary orders are overly generous and I could use a break.

 

[Bali Hai]

The current court order states specifically the dollar amounts that will be provided for her rent, utilities and living expenses. These are temporary orders, but have been in place for about 5 months. The court orders going back to the beginning of the year were more vague. They directed no change in standard of living. There was a verbal agreement that I would maintain a $500 balance in her checking account. She would typically spend 2k/month in cash. This didn't include any household bills. I paid all of those as well. It was pretty outrageous.

Fortunately, or unfortunately, depends on perspective, there has been a recent break in my case and the alimony issue may become moot. X and her boyfriend were caught in an identity theft scam with my personal information. The only reason I even discovered their involvement was because the local police phoned me when they picked up her boyfriend for Meth distribution and he had 4 of my credit cards in his pocket. He implicated my X directly.

My attorney filed motions yesterday. There is more to the story, as if this isn't enough. It's all fairly difficult to believe, but really did happen. I guess some people feel the need to hit rock bottom.

The upside is that I have had sole custody of the kids for the last 5 months, so they haven't been exposed to any of this. They miss their mother and she has court supervised visitation, but has not exercised her rights.

It would be nice if the payments I have been making are tax deductible. I have all the court documents as well as records of all bills paid directly on her behalf and all cash deposits to her account. The current temporary orders are overly generous and I could use a break.

You have done gone over my head completely on this one.

May I suggest that you direct your tax questions to my cohort (LdiJ) for a professional and detailed response to your tax questions.

 

[SingleAZdad]

LD gave me some good advice earlier in the post. LD directed me to consult a tax professional with my receipts and the court orders.

It sounds like some will be deductible. The court order wording is clear and includes dollar amounts.

Thanks for your comments.