Tax season may have come and
gone for this year, but don’t put your taxes too far down on your list of
priorities just yet. The IRS recently revealed that it is going to start
looking more closely at tax returns for divorced couples where maintenance, or
alimony, is involved.
The news comes on the heels of a
new study that revealed a gross discrepancy between what ex-spouses should be
reporting on their tax returns and what they’re actually claiming.
Under the tax code, a spouse who
is paying maintenance can deduct those payments each year, while the spouse who
is receiving payments must claim that money as income. While payments for child
support aren’t considered income and can’t be deducted, alimony payments must
be.
A recent report by an IRS
watchdog revealed that nearly half of the tax returns from ex-spouses contained
discrepancies regarding alimony paid and income reported. The report estimated
that over a five-year period, those errors could amount to $1.7 billion
dollars. In light of that news, the IRS plans to change its audit filters to
catch some of these suspicious returns.
To avoid a potential audit, it’s
important to ensure you know what’s required. Here’s a
helpful blog regarding how to file a return after a divorce. And it may be
helpful to seek out an accountant or someone with specialized experience with
these types of returns.
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