Claim Alimony without ITIN

[new_user]

What is the name of your state (only U.S. law)? New Jersey

My wife is a Indian citizen and resident, she doesn't have a SSN or ITIN, I've paid a one time alimony as settlement and got the divorce from the Indian courts, I've all the paper work for that. I am working in USA since past 8 years and paid the alimony from the amount I earned as after tax salary in US. How can i claim the alimony while filing my tax returns, please let me know if there is a way and what needs to be done.

 

[LdiJ]

What is the name of your state (only U.S. law)? New Jersey

My wife is a Indian citizen and resident, she doesn't have a SSN or ITIN, I've paid a one time alimony as settlement and got the divorce from the Indian courts, I've all the paper work for that. I am working in USA since past 8 years and paid the alimony from the amount I earned as after tax salary in US. How can i claim the alimony while filing my tax returns, please let me know if there is a way and what needs to be done.

Under the federal tax code that would not be considered to be alimony. It would be considered to be a property settlement and therefore would not be tax deductible.

 

[new_user]

Under the federal tax code that would not be considered to be alimony. It would be considered to be a property settlement and therefore would not be tax deductible.

Thanks for the reply Ldij, but how can it be a property settlement when its clearly mentioned in the divorce papers that my spouse received it as one time permanent alimony. The only source of income I have is my job in US and I have all the receipts for the amount transferred to India to pay the alimony. Alimony was paid to my spouse in the court in the form of a Demand Draft and it was recorded in the court as alimony. I've contacted a tax consultant in US and he said we can do paper filing and submit the proofs and can claim alimony, please let me know your thoughts.

 

[LdiJ]

Thanks for the reply Ldij, but how can it be a property settlement when its clearly mentioned in the divorce papers that my spouse received it as one time permanent alimony. The only source of income I have is my job in US and I have all the receipts for the amount transferred to India to pay the alimony. Alimony was paid to my spouse in the court in the form of a Demand Draft and it was recorded in the court as alimony. I've contacted a tax consultant in US and he said we can do paper filing and submit the proofs and can claim alimony, please let me know your thoughts.

Alimony is a periodic payment that is monthly for a specified period of time. Just because you call it alimony in the divorce papers does not make it alimony under the code. I think that you would have a hard time convincing the IRS that it was not a property settlement, but if you can find a tax consultant willing to sign a return with lump sum alimony on it, you are free to take that risk. I wouldn't do it myself unless the client could prove that there was a separate property settlement.

 

[davew128]

It can't be alimony if its a settlement. More to the point, even if it were alimony there are recapture rules for dramatic decreases in alimony in the first three years. If your US tax consultant told you that "proof" was going to be submitted with the return, then he's a fraud. One does not submit proof with a tax return. It gets tossed by the IRS.

http://family-law.lawyers.com/spousal-support/recapture-of-excess-front-loaded-alimony-payments.html

 

[new_user]

Alimony is a periodic payment that is monthly for a specified period of time. Just because you call it alimony in the divorce papers does not make it alimony under the code. I think that you would have a hard time convincing the IRS that it was not a property settlement, but if you can find a tax consultant willing to sign a return with lump sum alimony on it, you are free to take that risk. I wouldn't do it myself unless the client could prove that there was a separate property settlement.

Thanks once again, maybe then I shouldn't take that risk as well.