A family law attorney can help you understand and prepare for issues surrounding spousal maintenance and your taxes. When it comes to this financial topic, court cases often change the rules. To ensure you are getting all the legal tax relief the law allows, it is a good idea to consult with a maintenance attorney in Chicago.
The IRS
The federal government looks at spousal support from many angles. The IRS does not count payments that are not cash. Some payments that you might consider part of spousal maintenance, such as letting an ex-partner use your property or payments sent to maintain real estate, typically cannot be used as a deduction in this category. When it comes to spousal maintenance and your taxes, cash payments are almost always deductible.
Payer and Payee
The IRS has rules for each party. Most often, the individual sending the money to the other party might be able to deduct that amount from their income. On the other side, the person receiving the cash must notify the IRS, and the government can track it as taxable income. Each situation is unique, and that’s why it’s important to discuss your payments, whether you are the one sending the funds or receiving them, with a maintenance attorney in Chicago.
Extra Payments
Child support and extra payments are marital transactions to understand before filing taxes. Most people cannot deduct either of these payments, but matters could change as new cases work their way through the judicial system. For more assistance with spousal maintenance and your taxes, contact Gordon & Perlut, LLC at their website.
