Alimony allowed in Texas?

[mikeburg]

For years I thought Alimony was not allowed by Texas law. As a matter of fact out of all the years I have prepared tax returns, this is the 1st time someone wanted to claim alimony as a deduction.

Now I have a Texas taxpayer wanting to deduct $500 per month for 12 months to his x-wife.

He only brought me a "MEDIATED SETTLEMENT AGREEMENT" that says $500/month for 12 months is "spousal support" (same as Alimony), but does not specify a begin or end date & does not say it stops at the x-wife's death.

The agreement also states "The 2015 Temporary Spousal Support contractually paid by the taxpayer is considered spousal support for Internal Revenue income tax purposes. In other word, it will be tax deductible to the taxpayer & taxable income to the s-wife."

This mediated agreement was dated 10-20-15.

However, the taxpayer has been paying his x-wife $500/month since May 2014.
Also, while we have the x-wife's social security number, it's unknown what month's she will be showing the alimony as income.

The only other items addressed by this agreement is the x-wife's health insurance, medical bills and each will be awarded the personal property in his or her possession.

(1) Do you think $500/month for 12 months qualifies for the Alimony deduction?
(2) What 12 month's is deductible?

I appreciate all you information & discussion. mikeburg

[Snaggletooth]

Extent of Court's Authority

From the language of the court, I believe the payments meet the definition of alimony, calling a rose by another name.

Although the court may fashion its language properly, I wouldn't think it has the authority to define for the IRS what should or should not be alimony. Especially if not all of the criteria were specified (such as specific length).

We have a similar situation with exemptions where courts continue to award exemptions in a divorce decree, whereas the IRS criteria involves only custody or 8332.

[Burke]

(1) I don't think he has a deduction for 12 months unless the "mediation settlement" identifies it as such retroactively. Was there some sort of legal agreement prior to this? And if it doesn't meet the IRS rules, it won't wash anyway for the federal return. Texas doesn't have an income tax, so it doesn't apply there.

(2) Unless you are also doing the wife's return, it doesn't matter what she is reporting.

[taxmom34]

I would think the date would be when ordered by court 10/20/15. that's when it was official

[mikeburg]

Thank you so much!

Thanks you guys, I really appreciate you. mikeburg