What Your Divorce Lawyers Do Not Always Tell You: Alimony Requires Estimated Tax Payments

What Your Divorce Lawyers Do Not Always Tell You:  Alimony Requires Estimated Tax Payments

The IRS Monitors Divorced Individuals’ Payments of Estimated Taxes.

The IRS rules are straightforward for divorced individuals who receive child support or alimony payments. Most recipients (women, predominantly) understand how these rules work. When Form 1040 time rolls around, they aren’t taxed on child support payments, provided their divorce decree specifically distinguishes these payments from alimony.