Because my ex now needs a tax consultant,

[babylonsister]

he's shared that I need to pay taxes on about $4K yearly he pays me. Married 28 years.

The fact he now needs a tax consultant reflects on him and his new wife. He married up.

[1000words]

1. Or wised up

It's not just for the wealthy. If you are going to be playing their game, it's useful to know their rules.

Regardless, a petty move on his part.

[kelly1mm]

2. Alimony (if it is alimony, not child suport) is taxable income to the recipient and deductible

by the payor. This is not new. Also, if you have not claimed that income on your past tax returns, you probably need to talk to a tax professional about amending your returns for the time period he has been paying you.

[babylonsister]

4. It's a military pension; I thought it was already taxed? nt

[kelly1mm]

6. On the federal level, military pensions are taxable income to the recipient. Does the OMB send you

the pension directly, like pursuant to a QDRO (qualified domestic relations order)? If so, then you should get a 1099-R for that and it gets reported (and taxed) as pension income on the federal tax form. Many states do not tax military retirement.

If, however the divorce decree says he will pay you $4000 per year alimony from the military retirement, then it is income to you and deductible to him (even if he 'already paid the tax' which is a misnomer, what he may have done is had withholdings taken from his pension, which are then reconciled on the tax form)

If, on the other hand, he is just giving you this money out of the goodness of his heart, then it is a gift and not taxable income to you nor deductible by him.

Basically, what I would need to know is why is he paying you this money? If it is a court order, what words did the judge use?

[pipoman]

9. Good answer

[Sgent]

3. Does he pay you alimony

pursuant to a court order / agreement -- if so then he's right that you will need to pay it, if you don't the IRS will match SSN's and come after you at some point.

if its not alimony, then its not considered income to you.

[babylonsister]

5. Not alimony, pension. Really?

[pipoman]

7. If it is being paid as a pension to him

and he is paying alimony out of his pension, the fact it is a pension is probably immaterial.

[kelly1mm]

8. I second this reasoning (and would bet is the factual senario). nt

[Sgent]

11. Just to agree with everything Kelly1 has said as well

and to add....

He is entitled to a tax deduction for the amount of alimony paid. That amount is reported by him along with your SSN on his tax return, and at some point the IRS will most likely match the two. He presumably has your SSN from the time you were married, but even if that were not the case he could require it as a condition of alimony.

[FarCenter]

10. Federal Taxes on Veterans' Disability or Military Retirement Pensions

http://myarmybenefits.us.army.mil/Home/Benefit_Library/Federal_Benefits_Page/Federal_Taxes_on_Veterans_Disability_or_Military_Retirement_Pensions.html?serv=147