If I give my wife a cash settlement, can I count that as alimony on my taxes for that year?

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If I give my wife a cash settlement, can I count that as alimony on my taxes for that year?

I provided my wife a cash settlement in 2010 of $50,000 instead of yearly alimony and owe no alimony going forward. Yet I’ll continue to pay child support for a number of years. Can I deduct the $50,000 from my taxes for 2010? I have AGI of $70,000.

Asked on March 18, 2011 under Family Law, Ohio

Answers:

Denise Ferguson / Denise Ferguson Attorney At Law

Answered 10 years ago | Contributor

The IRS has very specific rules regarding alimony and when it can be deducted. Depending on how the cash settlement was worded it may not even be considered alimony but rather a property settlement. Which means it would not be deductible ordinarily. The exact wording of the documents matters immensely and without you sharing that no one can exactly answer your question.

 

Your best bet is to take your documents to an attorney and have it deciphered and then consult a tax professional who can determine if the IRS will accept the wording for alimony and allow you to deduct it.


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