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Divorce proceedings include the settlement of many issues between the parting couple. One issue is alimony, an allowance authorized by law for one spouse to receive from the other for financial support. At one time, courts used alimony as a punishment, ordering a husband guilty of marital fault to pay alimony to the innocent wife. Today, courts often refer to alimony as spousal support and award it based on need and ability to pay, not on gender or as a punitive measure. Another alimony issue is compensation when one spouse supported the other through graduate or professional school. The Analysis The Alimony Comes With TaxThe Analysis The Alimony Comes With Tax - apologise, but
In Illinois, spousal maintenance payments or alimony can be deducted by the party that is responsible for paying them for tax purposes. Also, the receiving party can also count it as taxable income. These payments can be made non-taxable or non-deductible in the divorce settlement as well. It can be a part of the divorce settlement you come up with together. The settlement can include medical bills that pertain to your spouse, housing cost and taxes. If you are receiving support payments from your spouse, you should be aware of how it can impact your taxes. When your ex spouse writes you a paycheck, you need to pay taxes on it yourself. You can also choose to withhold the extra amount.The Analysis The Alimony Comes With Tax Video
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