Can you claim alimony as a deduction? That's an excellent question. As a general rule, alimony that you receive is taxable income, and as a general rule, the alimony that you pay is also going to be a deduction. Now, there are a couple of exceptions. The good news is, the IRS has a publication that'll help us with the details. It's called publication 504, and it's for divorced or separated individuals. There is lots of detail right on this website to help you with some of those more complicated issues. Again, as a general rule, you see right here on the front page, starting on page 12, lots of detailed rules about alimony. If you do pay alimony under a regular divorce decree that has been approved, those amounts are going to be deductible, and they show right up on your 1040, right on page one. You can go back to that form 1040, I know we looked at that a couple of times, but right on line 31a, you see right here at the bottom, 31a, there's the alimony that you pay. Now, I'd mention that averted when I first started answering the question, Kelly, that your alimony payments that you make most likely are going to be deductible, right on your 1040, here on line 31a. But the IRS also wants you to tell them who you are paying the alimony to because, again, the alimony is also taxable income. So you'll need to include the social security number of the individual that you're actually making those alimony payments to. So keep that in mind as well. But those are two resources that you can use to make sure you dot the i's and cross the t's and get all that information correct.
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Video instructions and help with filling out and completing Will Form 1120 C Deductible
