50415006IDivorced
or Separated
IndividualsWhat's New1Reminders2Introduction2Filing Status3Married Filing Jointly3Married Filing Separately4Head of Household6Exemptions8Personal Exemptions8Exemptions for Dependents8Phaseout of Exemptions10Alimony11General Rules11Instruments Executed After 198412Instruments Executed Before 198515Qualified Domestic Relations Order16Individual Retirement Arrangements16Property Settlements17Transfer Between Spouses17Gift Tax on Property Settlements18Sale of Jointly-Owned Property20Costs of Getting a Divorce20Tax Withholding and Estimated Tax20Community Property21Community Income21Alimony (Community Income)22How To Get Tax Help23Index25What's NewHead of household.
Beginning in 2005, you will use new rules to determine whether someone is your qualifying person so you can claim head of household filing status.
To be your qualifying person, a child generally must be your qualifying child. See Head of Household.
Exemption for dependent.
Beginning in 2005, you will use new rules to determine whether you can claim an exemption for a dependent. Your dependent can be either a
qualifying child or a qualifying relative. See Exemptions for Dependents.
Hurricane Katrina tax relief.
Emergency tax relief was enacted as a result of Hurricane Katrina. The tax benefits provided by this relief include the following.
An additional exemption amount if you provided housing for a person displaced by Hurricane Katrina.
Special rules for time and support tests for people who were temporarily relocated because of Hurricane Katrina.
For more details on these and other tax benefits related to Hurricane Katrina, see Publication 4492.
At the time this publication went to print, Congress was considering legislation that would provide additional tax relief for individuals affected
by Hurricanes Katrina, Rita, and Wilma. For more details, and to find out if this legislation was enacted, see Publication 4492.
RemindersRelief from joint liability.Equitable reliefRelief from joint liabilityReminders:Joint liability, relief fromJoint liability:Relief fromLiability for taxesRelief from joint liabilityRelief from joint liabilitySeparation of liabilityRelief from joint liability
In some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint tax return. For more information, see
Relief from joint liability under Married Filing Jointly.
Social security numbers for dependents.Dependents:Social security numbersReminders:Social security numbers for dependentsSocial security numbers (SSNs):Dependents
You must include the taxpayer identification number (generally the social security number) of every person for whom you claim an exemption. See
Exemptions for Dependents under Exemptions, later.
Individual taxpayer identification number (ITIN).Form W-7:Individual taxpayer identification number (ITIN)Identification numberReminders:Individual taxpayer identification number (ITIN)Individual taxpayer identification numbers (ITINs)ITINs (Individual taxpayer identification numbers)Taxpayer identification numbers
The IRS will issue an ITIN to a nonresident or resident alien who does not have and is not eligible to get a social security number (SSN). To apply
for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. It usually takes about 4 to 6 weeks to get an
ITIN. The ITIN is entered wherever an SSN is requested on a tax return. If you are required to include another person's SSN on your return and that
person does not have and cannot get an SSN, enter that person's ITIN.
Change of address.Address, change ofChange of address
If you change your mailing address, be sure to notify the Internal Revenue Service. You can use Form 8822, Change of Address. Mail it to the
Internal Revenue Service Center for your old address. (Addresses for the Service Centers are on the back of the form.)
Change of name.Name, change ofChange of name
If you change your name, be sure to notify the Social Security Administration using Form SS-5, Application for a Social Security Card.
Change of withholding.Withholding:Change ofChange of withholding
If you have been claiming a withholding exemption for your spouse, and you divorce or legally separate, you must give your employer a new Form W-4,
Employee's Withholding Allowance Certificate, within 10 days after the divorce or separation showing the correct number of exemptions.
Photographs of missing children.Children:Photographs of missing childrenMissing children, photographs of
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children
selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the
photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication explains tax rules that apply if you are divorced or separated from your spouse. It covers general filing information and can help
you choose your filing status. It also can help you decide which exemptions you are entitled to claim, including exemptions for dependents.
The publication also discusses payments and transfers of property that often occur as a result of divorce and how you must treat them on your tax
return. Examples include alimony, child support, other court-ordered payments, property settlements, and transfers of individual retirement
arrangements. In addition, this publication also explains deductions allowed for some of the costs of obtaining a divorce and how to handle tax
withholding and estimated tax payments.
The last part of the publication explains special rules that may apply to persons who live in community property states.
Comments and suggestions.Comments on publicationSuggestions for publication
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in
your correspondence.
You can email us at
*taxforms@irs.gov. (The asterisk must be included in the
address.) Please put Publications Comment on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Tax questions.
If you have a tax question, visit
www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either
of the addresses listed above.
Ordering forms and publications.
Visit
www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the National Distribution Center at the
address shown under How To Get Tax Help in the back of this publication.
Publications501Exemptions, Standard Deduction, and Filing Information544 Sales and Other Dispositions of Assets555 Community Property590Individual Retirement Arrangements (IRAs)971Innocent Spouse ReliefForm (and Instructions)Release of Claim to Exemption for Child of Divorced or Separated ParentsInjured Spouse AllocationRequest for Innocent Spouse Relief (And Separation of Liability and Equitable Relief)
See How To Get Tax Help near the end of this publication for information about getting publications and forms.
Filing StatusFiling status
Your filing status is used in determining whether you must file a return, your standard deduction, and the correct tax. It may also be used in
determining whether you can claim certain deductions and credits. The filing status you can choose depends partly on your marital status on the last
day of your tax year.
Marital status.Marital status
If you are unmarried, your filing status is single or, if you meet certain requirements, head of household or qualifying widow(er). If you are
married, your filing status is either married filing a joint return or married filing a separate return. For information about the single and
qualifying widow(er) filing statuses, see Publication 501.
For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife.
You are unmarried for the whole year if either of the following applies.
Separate maintenance decrees
You have obtained a final decree of divorce or separate maintenance by the last day of your tax year. You must follow your state law to
determine if you are divorced or legally separated.
Exception. If you and your spouse obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals,
and at the time of divorce you intend to remarry each other and do so in the next tax year, you and your spouse must file as married individuals.
Statute of limitations:Amended return
You have obtained a decree of annulment, which holds that no valid marriage ever existed. You must file amended returns (Form 1040X, Amended
U.S. Individual Income Tax Return) for all tax years affected by the annulment that are not closed by the statute of limitations. The statute of
limitations generally does not end until 3 years after the due date of your original return. On the amended return you will change your filing status
to single, or if you meet certain requirements, head of household.
You are married for the whole year if you are separated but you have not obtained a final decree of divorce or separate maintenance by the last day
of your tax year. An interlocutory decree is not a final decree.
Exception.
If you live apart from your spouse, under certain circumstances you may be considered unmarried and can file as head of household. See Head of
Household, later.
Married Filing JointlyJoint returnsReturnsJointJoint returns
If you are married, you and your spouse can choose to file a joint return. If you file jointly, you both must include all your income, exemptions,
deductions, and credits on that return. You can file a joint return even if one of you had no income or deductions.
If both you and your spouse have income, you should usually figure your tax on both a joint return and separate returns to see which gives you the
lower tax.
To file a joint return, at least one of you must be a U.S. citizen or resident at the end of the tax year. If either of you was a nonresident alien
at any time during the tax year, you can file a joint return only if you agree to treat the nonresident spouse as a resident of the United States.
This means that your combined worldwide incomes are subject to U.S. income tax. These rules are explained in Publication 519, U.S. Tax Guide for
Aliens.
Signing a joint return.Joint returns:Signing
Both you and your spouse must sign the return, or it will not be considered a joint return.
Joint and individual liability.Joint returns:Joint and individual liability
Both you and your spouse are responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. This means
that one spouse may be held liable for all the tax due even if all the income was earned by the other spouse.
If you are divorced, you are still jointly and individually responsible for any tax, interest, and penalties due on a joint return for a tax year
ending before your divorce. This responsibility applies even if your divorce decree states that your former spouse will be responsible for any amounts
due on previously filed joint returns.
Relief from joint liability.Joint liability:Relief fromJoint returns:Relief from joint liabilityRelief from joint liability
In some cases, a spouse will be relieved of the tax, interest, and penalties on a joint return. You can ask for relief no matter how small the
liability.
There are three types of relief available.
Innocent spouse relief, which applies to all joint filers.
Separation of liability, which applies to joint filers who are divorced, widowed, legally separated, or who have not lived together for the
12 months ending on the date election of this relief is filed.
Equitable relief, which applies to all joint filers who do not qualify for innocent spouse relief or separation of liability and to married
couples filing separate returns in community property states.
Innocent spouse relief
Innocent spouse relief and separation of liability apply only to items incorrectly reported on the return. If a spouse does not qualify for
innocent spouse relief or separation of liability, the IRS may grant equitable relief.
Form 8857:Innocent spouse reliefEach of these kinds of relief is different, and they each have different requirements. You must file
Form 8857 to request any of these kinds of relief. Publication 971 explains these kinds of relief and who may qualify for them. You can also find
information on our website at
www.irs.gov.
Tax refund applied to spouse's debts.Debts of spouse:Refund applied toRefunds:Spouse's debts, applied toSpouse:Refund applied to debts
The overpayment shown on your joint return may be used to pay the past-due amount of your spouse's debts. You can get your share of the refund if
you qualify as an injured spouse.
You are an injured spouse if you file a joint return and all or part of your share of the overpayment was, or is expected to be, applied against
your spouse's past-due federal tax, state income tax, child or spousal support, or federal nontax debt, such as a student loan. An injured spouse can
get a refund for his or her share of the overpayment that would otherwise be used to pay the past-due amount.
To be considered an injured spouse, you must:
File a joint return, and
Have reported income (such as wages, interest, etc.), or
Have made and reported tax payments (such as federal income tax withheld from wages or estimated tax payments), or claimed the earned income
credit or other refundable credit, and
Not be legally obligated to pay the past-due amount.
If the injured spouse's permanent home is in a community property state, then the injured spouse must only meet (4) above. For more information,
see Publication 555, Community Property.
Refunds that involve community property states must be divided according to local law. If you live in a community property state in which all
community property is subject to the debts of either spouse, your entire refund can be used to pay those debts.
Refunds:Injured spouse, community property
Injured spouse:Claim for refund
If you are an injured spouse, you must file Form 8379 to have your portion of the overpayment refunded to you. Follow the instructions to the form.
If you have not filed your joint return and you know that your joint refund will be offset, file Form 8379 with your return. You should receive
your refund within 14 weeks from the date the paper return is filed or within 11 weeks from the date the return is filed electronically.
If you filed your joint return and your joint refund was offset, file Form 8379 by itself. When filed after offset, it can take up to 8 weeks to
receive your refund. Do not attach the previously filed tax return, but do include copies of all Forms W-2 and W-2G for both spouses and any Forms
1099 that show income tax withheld.
Statute of limitations:Injured spouse allocationInjured spouse:Claim for allocation:Statute of limitations
Generally, you must file Form 8379 no later than 6 years from the date you are notified of the offset (3 years if the offset was used to pay
federal tax debt). A separate Form 8379 must be filed for each tax year to be considered.
An injured spouse allocation is different from an innocent spouse relief request. An injured spouse uses Form 8379 to request an allocation of the
tax overpayment attributed to each spouse. An innocent spouse uses Form 8857 to request relief from joint liability for tax, interest, and penalties
on a joint return for items of the other spouse (or former spouse) that were incorrectly reported on the joint return. For information on innocent
spouses, see Relief from joint liability, earlier.
Married Filing SeparatelyReturnsSeparateSeparate returnsSeparate returns
If you and your spouse file separate returns, you should each report only your own income, exemptions, deductions, and credits on your individual
return. You can file a separate return even if only one of you had income. For information on exemptions you can claim on your separate return, see
Exemptions, later.
Community or separate income.Separate returns:Community or separate income
If you live in a community property state and file a separate return, your income may be separate income or community income for income tax
purposes. For more information, see Community Income under Community Property, later.
Separate liability.Separate returns:Separate liability
If you and your spouse file separately, you each are responsible only for the tax due on your own return.
Itemized deductions.Itemized deductions on separate returnsSeparate returns:Itemized deductions
If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will not qualify for the standard deduction and
should also itemize deductions.
<ROM>Table 1.</ROM>
<IMARK>Itemized Deductions on Separate ReturnsThis table shows itemized deductions you can claim on your separate return whether you paid the expenses separately with your own funds
or jointly with your spouse. Caution: If you live in a community property state, these rules do not apply. See Community
Property.IF you paid ...AND you ...THEN you can deduct on your separate federal return ...medical expensespaid with funds deposited in a joint checking account in which you and your spouse have an equal interesthalf of the total medical expenses, subject to the limits, unless you can show that you alone paid the expenses.
state income taxfile a separate state income tax returnthe state income tax you alone paid during the year. file a joint state income tax return and you and your spouse are jointly and individually liable for the full
amount of the state income taxthe state income tax you alone paid during the year. file a joint state income tax return and you are liable for only your own share of state income taxthe smaller of:
the state income tax you alone paid during the year, or
the total state income tax you and your spouse paid during the year multiplied by the following fraction. The numerator is your gross income
and the denominator
is your combined gross income.
property taxpaid the tax on property held as tenants by the entiretythe property tax you alone paid. mortgage interestpaid the interest on a qualified home held
as tenants by the entiretythe mortgage interest you alone paid. casualty losshave a casualty loss on a home you own
as tenants by the entiretyhalf of the loss, subject to the deduction limits. Neither spouse may report the total casualty loss.
Dividing itemized deductions.
You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your spouse. See
Table 1.
Separate returns may give you a higher tax.Separate returns:Tax consequences
Some married couples file separate returns because each wants to be responsible only for his or her own tax. But in almost all instances, if you
file separate returns, you will pay more combined federal tax than you would with a joint return. This is because special rules apply if you file a
separate return. These rules include the following items.
Your tax rates will increase at income levels that are lower than those for a joint return filer.
Your exemption amount for figuring the alternative minimum tax will be half of that allowed a joint return filer.
You cannot take the credit for child and dependent care expenses in most cases.
You cannot take the earned income credit.
You cannot take the exclusion or credit for adoption expenses in most instances.
You cannot take the credit for higher education expenses (Hope and lifetime learning credits), the deduction for student loan interest, or
the deduction for tuition and fees.
You cannot exclude the interest from qualified savings bonds that you used for higher education expenses.
If you lived with your spouse at any time during the tax year:
You cannot claim the credit for the elderly or the disabled,
You will have to include in income up to 85% of any social security or equivalent railroad retirement benefits you received, and
You cannot roll over amounts from a traditional IRA into a Roth IRA.
Your income limits that reduce the child tax credit, retirement savings contributions credit, itemized deductions, and amount you can claim
for exemptions will be half of the limits allowed a joint return filer.
Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return).
Your basic standard deduction, if allowable, is half of that allowed a joint return filer. See Itemized deductions, earlier.
Joint return after separate returns.Joint returns:Change from separate returnSeparate returns:Change to or from joint return
If either you or your spouse files a separate return, you can change to a joint return any time within 3 years from the due date (not including
extensions) of the separate returns. This applies even if either of you filed as head of household. Use Form 1040X.
Tables and figures:Itemized deductions on separate returns (Table 1)Separate returns after joint return.Joint returns:Change to separate return
After the due date of your return, you and your spouse cannot file separate returns if you previously filed a joint return.
Exception.
A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. The
personal representative has one year from the due date (including extensions) of the joint return to make the change.
Head of HouseholdHead of household
Filing as head of household has the following advantages.
You can claim the standard deduction even if your spouse files a separate return and itemizes deductions.
Your standard deduction is higher than is allowed on a single or married filing separate return.
Your tax rate may be lower than it is on a single or married filing separate return.
You may be able to claim certain credits (such as dependent care credit and earned income credit) you cannot claim on a married filing
separate return.
Income limits that reduce your child tax credit, retirement savings contributions credit, itemized deductions, and the amount you can claim
for exemptions will be higher than the income limits on a married filing separate return.
Requirements.Filing status:Head of household
You may be able to file as head of household if you meet all the following requirements.
You are unmarried or considered unmarried on the last day of the year.
You paid more than half the cost of keeping up a home for the year.
A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). However,
if the qualifying person is your dependent parent, he or she does not have to live with you. See Special rule for parent, on this
page, under Qualifying person.
Head of household:Qualifying person
Special rules may apply for people who had to relocate because of Hurricane Katrina. For details, see Publication 4492.
Considered unmarried.Head of household:Considered unmarried
You are considered unmarried on the last day of the tax year if you meet all the following tests.
You file a separate return.
You paid more than half the cost of keeping up your home for the tax year.
Your spouse did not live in your home during the last 6 months of the tax year. Your spouse is considered to live in your home even if he or
she is temporarily absent due to special circumstances. See Temporary absences, later.
Your home was the main home of your child, stepchild, or eligible foster child for more than half the year. (See Qualifying
person, beginning on this page, for rules applying to a child's birth, death, or temporary absence during the year.)
You must be able to claim an exemption for the child. However, you meet this test if you cannot claim the exemption only because the
noncustodial parent can claim the child using the rules described later in Special Rules for Divorced or Separated Parents under
Exemptions for Dependents. The general rules for claiming an exemption for a dependent are shown later in Table 3.
If you were considered married for part of the year and lived in a community property state, special rules may apply in determining your income and
expenses. See Publication 555 for more information.
Nonresident alien spouse.Nonresident aliens:Head of householdHead of household:Nonresident alien spouse
If your spouse was a nonresident alien at any time during the tax year, and you have not chosen to treat your spouse as a resident alien, you are
considered unmarried for head of household purposes. However, your spouse is not a qualifying person for head of household purposes. You must have
another qualifying person and meet the other requirements to file as head of household.
Keeping up a home.Head of household:Keeping up a home
You are keeping up a home only if you pay more than half the cost of its upkeep. This includes rent, mortgage interest, taxes, insurance on the
home, repairs, utilities, and food eaten in the home. This does not include the cost of clothing, education, medical treatment, or transportation for
any member of the household.
Qualifying person.Head of household:Qualifying personQualifying person, head of household
Table 2 shows who can be a qualifying person. Any person not described in Table 2 is not a qualifying person.
Generally, the qualifying person must live with you for more than half of the year.
<ROM>Table 2.</ROM>
<IMARK>Who Is a Qualifying Person for Filing as Head of Household?
<SUP>1</SUP>Caution. See the text of this publication for the other requirements you must meet to claim head of household filing
status.IF the person is your ...AND ...THEN that person is ...qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)
2he or she is singlea qualifying person, whether or not you can claim an exemption for the person.he or she is married
and you can claim an exemption for him or hera qualifying person.he or she is married
and you cannot claim an exemption for him or hernot a qualifying person.
3qualifying relative
4 who is your father or motheryou can claim an exemption for him or hera qualifying person.
5you cannot claim an exemption for him or hernot a qualifying person.qualifying relative
4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests)
6he or she lived with you more than half the year,
and you can claim an exemption for him or her
7a qualifying person.he or she did not live with you more than half the yearnot a qualifying person.you cannot claim an exemption for him or hernot a qualifying person.
1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year.2 The term qualifying child is defined under Exemptions for Dependents, later. Note. A child may be your
qualifying child for head of household filing status even if the child is not a qualifying child for whom you can claim an exemption. This applies if
the child is the qualifying child of the noncustodial parent under the rules described under Special Rules for Divorced or Separated
Parents under Exemptions for Dependents, later.3 This person is a qualifying person if the requirements described under Married child are met.4 The term qualifying relative is defined in Table 3, later.5 See Special rule for parent for an additional requirement.6 A person who is your qualifying relative only because he or she lived with you all year as a member of your household is not a qualifying
person.7 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. See
Publication 501.
Special rule for parent.Children:Claiming parent, when child is head of householdParent:Head of household, claim for
If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live
with you. However, you must be able to claim an exemption for your father or mother. Also, you must pay more than half the cost of keeping up a home
that was the main home for the entire year for your father or mother. You are keeping up a main home for your father or mother if you pay more than
half the cost of keeping your parent in a rest home or home for the elderly.
Death or birth.Birth of dependentChildren:Birth of child:Head of household, qualifying person to file asChildren:Death of child:Head of household, qualifying person to file asDeath of dependent
You may be eligible to file as head of household if the individual who qualifies you for this filing status is born or dies during the year. You
must have provided more than half of the cost of keeping up a home that was the individual's main home for more than half of the year, or, if less,
the period during which the individual lived.
Example.
You are unmarried. Your mother, for whom you can claim an exemption, lived in an apartment by herself. She died on September 2. The cost of the
upkeep of her apartment for the year until her death was $6,000. You paid $4,000 and your brother paid $2,000. Your brother made no other payments
towards your mother's support. Your mother had no income. Because you paid more than half of the cost of keeping up your mother's apartment from
January 1 until her death, and you can claim an exemption for her, you can file as a head of household.
Temporary absences.Absence, temporary
You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special
circumstances such as illness, education, business, vacation, or military service. It must be reasonable to assume that the absent person will return
to the home after the temporary absence. You must continue to keep up the home during the absence.
Kidnapped child.Kidnapped child:Head of household status and
You may be eligible to file as head of household, even if the child who is your qualifying person has been kidnapped. You can claim head of
household filing status if all the following statements are true.
The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the
child's family.
In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping.
You would have qualified for head of household filing status if the child had not been kidnapped.
This treatment applies for all years until the child is returned. However, the last year this treatment can apply is the earlier of:
The year there is a determination that the child is dead, or
The year the child would have reached age 18.
Filing status:Change to:Separate returns after joint return
Tables and figures:Qualifying person for head of household (Table 2)Head of household:Qualifying person (Table 2)Qualifying person, head of household:Table 2Married child.
Your child who is married at the end of the year generally cannot be your qualifying person unless you can claim the child as a dependent. However,
the child is a qualifying person if all three of the following requirements are met.
The child is your qualifying child (as defined under Exemptions for Dependents, later).
The child does not file a joint return, unless the return is filed only as a claim for refund and no tax liability would exist for either
spouse if they had filed separate returns.
The child is a U.S. citizen or resident, U.S. national, or a resident of Canada or Mexico. (This requirement is met if you are a U.S.
citizen and the child is an adopted child who lived with you all year as a member of your household.)
More information.Filing status
For more information on filing as head of household, see Publication 501.
ExemptionsExemptions
Generally, you can deduct $3,200 for each exemption you claim in 2005. You may be able to take an additional exemption amount if you provided
housing to a person displaced by Hurricane Katrina. For more information, see Publication 4492.
If your adjusted gross income is more than $109,475, see Phaseout of Exemptions, later.
There are two types of exemptions: personal exemptions and exemptions for dependents. If you are entitled to claim an exemption for a dependent
(such as your child), that dependent cannot claim his or her personal exemption on his or her own tax return.
Personal ExemptionsExemptions:PersonalPersonal exemptions
You can claim your own exemption unless someone else can claim it. If you are married, you may be able to take an exemption for your spouse. These
are called personal exemptions.
Exemption for Your SpouseExemptions:Spouse
Your spouse is never considered your dependent. You may be able to take an exemption for your spouse only because you are married.
Joint return.Joint returns:Exemption for spouse
On a joint return, you can claim one exemption for yourself and one for your spouse.
If your spouse had any gross income, you can claim his or her exemption only if you file a joint return.
Separate return.Separate returns:Exemption for spouse
If you file a separate return, you can take an exemption for your spouse only if your spouse had no gross income and was not the dependent of
another taxpayer. If your spouse is the dependent of another taxpayer, you cannot claim an exemption for your spouse even if the other taxpayer does
not actually claim your spouse's exemption.
Alimony paid.Alimony:No exemption for spouse
If you paid alimony to your spouse, you cannot take an exemption for your spouse. This is because alimony is gross income to the spouse who
received it.
Divorced or separated spouse.
If you obtained a final decree of divorce or separate maintenance by the end of the year, you cannot take your former spouse's exemption. This rule
applies even if you provided all of your former spouse's support.
Exemptions for DependentsExemptions:DependentsDependents:Exemption for
You are allowed one exemption for each person you can claim as a dependent. You can claim an exemption for a dependent even if your dependent files
a return.
Beginning in 2005, the term dependent means:
Dependents:Qualifying childQualifying relativeQualifying child, exemption forQualifying relative, exemption for
A qualifying child, or
A qualifying relative.
Table 3 shows the tests that must be met to be either a qualifying child or qualifying relative, plus the additional requirements for claiming an
exemption for a dependent. For detailed information, see Publication 501.
<ROM>Table 3.</ROM>
<IMARK>Overview of the Rules for Claiming an Exemption for a DependentCaution. This table is only an overview of the rules. For details, see Publication 501.•You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a
dependent by another taxpayer. •You cannot claim a married person who files a joint return as a dependent unless that joint return is
only a claim for refund and there would be no tax liability for either spouse on separate returns. •You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident, U.S. national, or a
resident of Canada or Mexico, for some part of the year.
1•You cannot claim a person as a dependent unless that person is your qualifying child or qualifying
relative.Tests To Be a Qualifying ChildTests To Be a Qualifying Relative1.
2.
3.
4.
5.The child must be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or
a descendant of any of them.
The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student, or (c) any age if
permanently and totally disabled.
The child must have lived with you for more than half of the year.
2,3The child must not have provided more than half of his or her own support for the year.
3If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying
child.1.
2.
3.
4.The person cannot be your qualifying child or the qualifying child of anyone else.
The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you, or (b) must
live with you all year as a member of your household.
2The person's gross income for the year must be less than $3,200.
4You must provide more than half of the person's total support for the year.
3,5
1 Exception exists for certain adopted children.2 Exceptions exist for temporary absences, children who were born or died during the year, children of divorced or separated parents, and
kidnapped children. 3 Special rules may apply for people who were temporarily relocated because of Hurricane Katrina. For details, see Publication
4492.4 Exception exists for persons who are disabled and have income from a sheltered workshop.5 Exception exists for multiple support agreements. See Publication 501.
Dependent not allowed a personal exemption. If you can claim an exemption for your dependent, the dependent cannot claim his or her own
exemption on his or her own tax return. This is true even if you do not claim the dependent's exemption on your return or if the exemption will be
reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later.
Child tax credit
You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year. For more information, see the
instructions in your tax forms package.
Special Rules for Divorced or Separated ParentsParents, divorced or separatedDivorced parentsSeparated parents
In most cases, a child of divorced or separated parents will be a qualifying child (see Table 3) of one of the parents. However, if the child does
not meet the requirements to be a qualifying child of either parent, the child may be a qualifying relative of one of the parents.
A child will be treated as the qualifying child or qualifying relative of his or her noncustodial parent if all of the following apply.
The parents:
Are divorced or legally separated under a decree of divorce or separate maintenance,
Are separated under a written separation agreement, or
Lived apart at all times during the last 6 months of the year.
The child received over half of his or her support for the year from the parents.
The child is in the custody of one or both parents for more than half of the year.
Either of the following applies.
A decree of divorce or separate maintenance or written separation agreement that applies to 2005 provides that the noncustodial parent can
claim the child as a dependent. If your decree or agreement went into effect before 1985, the noncustodial parent must provide at least $600 for
support of the child during 2005.
The custodial parent signs a written declaration that he or she will not claim the child as a dependent for 2005.
If the support of the child is determined under a multiple support agreement, this special support test for divorced or separated parents does not
apply.
Custodial parent and noncustodial parent.Child custodyChildren:Custody ofCustody of childDivorced taxpayers:Child custody
The custodial parent is the parent with whom the child lived for the greater part of the year. The other parent is the noncustodial parent.
If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one
with whom the child lived for the greater part of the rest of the year.
Example.
Under the terms of your divorce, your child lived with you for 10 months of the year. The child lived with your former spouse for the other 2
months. You are considered the custodial parent.
Written declaration.Form 8332:Release of exemption to noncustodial parent
The custodial parent must use either Form 8332 or a similar statement (containing the information required by the form) to make the written
declaration to release the exemption to the noncustodial parent.
The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in
the declaration.
Child support under pre-1985 agreement.Child support under pre-1985 agreement
All child support payments actually received from the noncustodial parent under a pre-1985 agreement are considered used for the support of the
child.
Example.
Under a pre-1985 agreement, the noncustodial parent provides $1,200 for the child's support. This amount is considered support provided by the
noncustodial parent even if the $1,200 was actually spent on things other than support.
Tables and figures:Exemption for dependents (Table 3)Dependents:Qualifying child (Table 3)Qualifying relative (Table 3)Qualifying child, exemption for (Table 3)Qualifying relative, exemption for (Table 3)Alimony.Alimony
Payments to a spouse that are includible in the spouse's gross income as either alimony, separate maintenance payments, or similar payments from an
estate or trust, are not treated as a payment for the support of a dependent.
Parents who never married.
This special rule for divorced or separated parents also applies to parents who never married.
Special test for qualifying child of more than one person.
Sometimes, a child meets the relationship, age, residency, and support tests to be a qualifying child of more than one person. Although the child
is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child. To meet this special test, you
must be the person who can treat the child as a qualifying child.
If you and another person have the same qualifying child, you and the other person(s) can decide which of you will treat the child as a qualifying
child. That person can take all of the following tax benefits (provided the person is eligible for each benefit) based on the qualifying child.
The exemption for the child.
The child tax credit.
Head of household filing status.
The credit for child and dependent care expenses.
The earned income credit.
The other person cannot take any of these benefits based on this qualifying child. In other words, you and the other person cannot agree to
divide these tax benefits between you.
If you and the other person(s) cannot agree on who will claim the child and more than one person files a return claiming the same child, the IRS
will disallow all but one of the claims using the tie-breaker rule in Table 4.
<ROM>Table 4.</ROM>
<IMARK>When More Than One Person Files a Return Claiming the Same Qualifying Child (Tie-Breaker Rule)IF more than one person files a return claiming the same qualifying child and ...THEN the child will be treated as the qualifying child of the ...only one of the persons is the child's parent,parent.two of the persons are the child's parent and they do not file a joint return together,parent with whom the child lived for the longer period of time during the year.two of the persons are the child's parent, they do not file a joint return together, and the child lived with each parent the same amount of
time during the year,parent with the highest adjusted gross income (AGI).none of the persons are the child's parent,person with the highest AGI.
Tables and figures:Tie-breaker rule (Table 4)More than one claims same qualifying child (Table 4)Tie-breaker rule (Table 4)Qualifying child:Tie-breaker rule (Table 4)Dependents:Tie-breaker rule (Table 4)
Example 1—divorced parents.
You, your husband, and your 10-year-old son lived together until July 1, 2005, when your husband moved out of the household. In July and August,
your son lived with your husband. In September and October, the boy lived with you. On November 1, 2005, you and your husband were divorced. For the
rest of the year, your son lived with your ex-husband, who was given custody. Your son is a qualifying child of both you and your ex-husband because
your son lived with each of you for more than half the year and because he met the relationship, age, and support tests for both of you.
You and your ex-husband may choose which of you will treat the child as a qualifying child. However, if you and he are unable to agree and both
treat the child as a qualifying child, only your ex-husband will be allowed to treat him as a qualifying child. This is because, during 2005, the
child lived with him longer than with you.
Example 2—unmarried parents.
You, your 5-year-old son, and your son's father lived together all year. You and your son's father are not married. Your son is a qualifying child
of both you and his father because he meets the relationship, age, residency, and support tests for both you and his father. Your adjusted gross
income (AGI) is $8,000 and your son's father's AGI is $18,000. You and your son's father may choose which of you will treat the child as a qualifying
child. However, if you and he are unable to agree and both treat the child as a qualifying child, only the father will be allowed to treat him as a
qualifying child. This is because his AGI, $18,000, is more than your AGI, $8,000.
Exemptions:DependentsDependents:Exemption forPhaseout of ExemptionsExemptions:Phaseout
The amount you can claim as a deduction for exemptions is phased out once your adjusted gross income (AGI) goes above a certain level for your
filing status. These levels are as follows:
AGI LevelWhich ReducesFiling Status Exemption AmountMarried filing separately $109,475 Single 145,950 Head of household 182,450 Married filing jointly 218,950 Qualifying widow(er) 218,950
You must reduce the dollar amount of your exemptions by 2% for each $2,500, or part of $2,500 ($1,250 if you are married filing separately), that
your AGI exceeds the amount shown above for your filing status. If your AGI exceeds the amount shown above by more than $122,500 ($61,250 if married
filing separately), the amount of your deduction for exemptions is reduced to zero.
If your AGI exceeds the level for your filing status, use the Deduction for Exemptions Worksheet, found in the instructions for Form 1040 or 1040A,
to figure the amount of your deduction for exemptions. However, if you are claiming an additional exemption amount for housing persons displaced by
Hurricane Katrina, use Form 8914, Part II, to figure your deduction.
ExemptionsAlimonyAlimony:Definition ofAlimony
Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. It does not include voluntary payments that are
not made under a divorce or separation instrument.
Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. Although this discussion is generally written
for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony.
To be alimony, a payment must meet certain requirements. Different requirements apply to payments under instruments executed after 1984 and to
payments under instruments executed before 1985. These requirements are discussed later.
Spouse or former spouse.Alimony:Former spouse, defined for purposes ofAlimony:Spouse, defined for purposes ofFormer spouse:Defined for purposes of alimonySpouse:Defined for purposes of alimony
Unless otherwise stated in the following discussions about alimony, the term spouse includes former spouse.
Divorce or separation instrument.Alimony:Divorce decree definedAlimony:Separation agreement definedDivorce decrees:Defined for purposes of alimonySeparation agreements:Defined for purposes of alimonySeparate maintenance decrees
The term divorce or separation instrument means:
A decree of divorce or separate maintenance or a written instrument incident to that decree,
A written separation agreement, or
A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. This includes a
temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or
agreement).
Payments under a divorce decree can be alimony even if the decree's validity is in question. A divorce decree is valid for tax purposes until a
court having proper jurisdiction holds it invalid.
Amended instrument.Divorce decrees:Amended
An amendment to a divorce decree may change the nature of your payments. Amendments are not ordinarily retroactive for federal tax purposes.
However, a retroactive amendment to a divorce decree correcting a clerical error to reflect the original intent of the court will generally be
effective retroactively for federal tax purposes.
Example 1.
A court order retroactively corrected a mathematical error under your divorce decree to express the original intent to spread the payments over
more than 10 years. This change also is effective retroactively for federal tax purposes.
Example 2.
Your original divorce decree did not fix any part of the payment as child support. To reflect the true intention of the court, a court order
retroactively corrected the error by designating a part of the payment as child support. The amended order is effective retroactively for federal tax
purposes.
You can deduct alimony you paid, whether or not you itemize deductions on your return. You must file Form 1040. You cannot use Form 1040A or Form
1040EZ.
Enter the amount of alimony you paid on Form 1040, line 31a. In the space provided on line 31b, enter your spouse's social security number.
If you paid alimony to more than one person, enter the social security number of one of the recipients. Show the social security number and amount
paid to each other recipient on an attached statement. Enter your total payments on line 31a.
Alimony:Social security number of recipient required for deductionSocial security numbers (SSNs):Alimony recipient's number required
If you do not provide your spouse's social security number, you may have to pay a $50 penalty and your deduction may be disallowed.
Report alimony you received on Form 1040, line 11. You cannot use Form 1040A or Form 1040EZ.
You must give the person who paid the alimony your social security number. If you do not, you may have to pay a $50 penalty.
Withholding on nonresident aliens.Alimony:Withholding, nonresident aliensNonresident aliens:WithholdingWithholding:Nonresident aliens
If you are a U.S. citizen or resident and you pay alimony to a nonresident alien spouse, you may have to withhold income tax at a rate of 30% (or
lower treaty rate) on each payment. For more information, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
General Rules
The following rules apply to alimony regardless of when the divorce or separation instrument was executed.
Payments not alimony.Alimony:Payments not included as
Not all payments under a divorce or separation instrument are alimony. Alimony does not include:
Child support,
Noncash property settlements,
Payments that are your spouse's part of community income, as explained later under Community Property,
Payments to keep up the payer's property, or
Use of property.
Example.
Under your written separation agreement, your spouse lives rent-free in a home you own and you must pay the mortgage, real estate taxes, insurance,
repairs, and utilities for the home. Because you own the home and the debts are yours, your payments for the mortgage, real estate taxes, insurance,
and repairs are not alimony. Neither is the value of your spouse's use of the home.
If they otherwise qualify, you can deduct the payments for utilities as alimony. Your spouse must report them as income. If you itemize deductions,
you can deduct the real estate taxes and, if the home is a qualified home, you can also include the interest on the mortgage in figuring your
deductible interest.
Child support.Alimony:Child support, difference fromChild support:Alimony, difference from
To determine whether a payment is child support, see the discussion under Instruments Executed After 1984, later. If your divorce or
separation agreement was executed before 1985, see the 2004 revision of Publication 504 on the IRS website at
www.irs.gov.
Underpayment.Alimony:Underpayment ofUnderpayment of alimony
If both alimony and child support payments are called for by your divorce or separation instrument, and you pay less than the total required, the
payments apply first to child support and then to alimony.
Example.
Your divorce decree calls for you to pay your former spouse $200 a month as child support and $150 a month as alimony. If you pay the full amount
of $4,200 during the year, you can deduct $1,800 as alimony and your former spouse must report $1,800 as alimony received. If you pay only $3,600
during the year, $2,400 is child support. You can deduct only $1,200 as alimony and your former spouse must report $1,200 as alimony received.
Payments to a third party.Alimony:Payments to third partyThird parties:Alimony payments to
Cash payments (including checks and money orders) to a third party on behalf of your spouse under the terms of your divorce or separation
instrument may be alimony, if they otherwise qualify. These include payments for your spouse's medical expenses, housing costs (rent, utilities,
etc.), taxes, tuition, etc. The payments are treated as received by your spouse and then paid to the third party.
Example 1.
Under your divorce decree, you must pay your former spouse's medical and dental expenses. If the payments otherwise qualify, you can deduct them as
alimony on your return. Your former spouse must report them as alimony received and can include them in figuring deductible medical expenses.
Example 2.
Under your separation agreement, you must pay the real estate taxes, mortgage payments, and insurance premiums on a home owned by your spouse. If
they otherwise qualify, you can deduct the payments as alimony on your return, and your spouse must report them as alimony received. If itemizing
deductions, your spouse can deduct the real estate taxes and, if the home is a qualified home, also include the interest on the mortgage in figuring
deductible interest.
Life insurance premiums.Alimony:Life insurance premiumsInsurance premiumsLife insurance premiums as alimony
Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the
policy.
Payments for jointly-owned home.Alimony:Jointly-owned home:Payments forAlimony:Mortgage payments asAlimony:Payments for jointly-owned homeHome owned jointly:Alimony payments forJointly-owned home:Alimony payments forMortgage payments as alimony
If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse or former spouse, some of your
payments may be alimony. See Table 5.
<ROM>Table 5.</ROM>
<IMARK>Expenses for a Jointly-Owned HomeUse the table below to find how much of your payment is alimony and how much you can claim as an itemized deduction.IF you must pay
all of the ...AND your home is ...THEN you can deduct and your spouse (or former spouse) must include as alimony
...AND you can claim as an itemized deduction ...mortgage payments (principal and interest)jointly ownedhalf of the total paymentshalf of the interest as interest expense (if the home is a
qualified home).
1real estate taxes and home insuranceheld as tenants in commonhalf of the total paymentshalf of the real estate taxes
2 and none of the home insurance.held as tenants by
the entirety or in
joint tenancynone of the paymentsall of the real estate taxes and none of the home insurance.
1 Your spouse (or former spouse) can deduct the other half of the interest if the home is a qualified home.
2 Your spouse (or former spouse) can deduct the other half of the real estate taxes.
Alimony:Jointly-owned home:Expenses for, as alimony (Table 5)Home owned jointly:Expenses for, as alimony (Table 5)Jointly-owned home:Expenses for, as alimony (Table 5)Tables and figures:Jointly-owned home, expenses for, as alimony (Table 5)
Instruments Executed After 1984Alimony:Instruments executed after 1984Alimony:Requirements for post-1984 instruments
The following rules for alimony apply to payments under divorce or separation instruments executed after 1984.
Exception for instruments executed before 1985.Alimony:Instruments executed before 1985
There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985.
A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will
apply.
A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984
that:
Changes the amount or period of payment, or
Adds or deletes any contingency or condition.
For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, see the 2004 revision of Publication 504 on the IRS
website at
www.irs.gov.
Example 1.
In November 1984, you and your former spouse executed a written separation agreement. In February 1985, a decree of divorce was substituted for the
written separation agreement. The decree of divorce did not change the terms for the alimony you pay your former spouse. The decree of divorce is
treated as executed before 1985. Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984.
Example 2.
Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. In this example, the decree
of divorce is not treated as executed before 1985. The alimony payments are subject to the rules for payments under instruments executed after 1984.
Alimony Requirements
A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all
the following requirements are met.
The payment is in cash.
The instrument does not designate the payment as not alimony.
The spouses are not members of the same household at the time the payments are made. This requirement applies only if the spouses are
legally separated under a decree of divorce or separate maintenance.
There is no liability to make any payment (in cash or property) after the death of the recipient spouse.
Death of recipient spouse.
The payment is not treated as child support.
Each of these requirements is discussed below.
Payments must be in cash.Alimony:Payments must be in cash
Only cash payments, including checks and money orders, qualify as alimony. The following do not qualify as alimony.
Transfers of services or property (including a debt instrument of a third party or an annuity contract).
Execution of a debt instrument by the payor.
The use of property.
Payments to a third party.Alimony:Payments to third partyThird parties:Alimony payments to
Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. See
Payments to a third party under General Rules, earlier.
Also, cash payments made to a third party at the written request of your spouse qualify as alimony if all the following requirements are met.
The payments are in lieu of payments of alimony directly to your spouse.
The written request states that both spouses intend the payments to be treated as alimony.
You receive the written request from your spouse before you file your return for the year you made the payments.
Payments designated as not alimony.Alimony:Payments designated as not alimony
You and your spouse can designate that otherwise qualifying payments are not alimony. You do this by including a provision in your divorce or
separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. For this purpose,
any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is
treated as a written separation agreement. If you are subject to temporary support orders, the designation must be made in the original or a later
temporary support order.
Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her
return. The copy must be attached each year the designation applies.
Spouses cannot be members of the same household.Alimony:Jointly-owned home:Separate residences inAlimony:Spouses cannot be members of the same household
Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or
separate maintenance. A home you formerly shared is considered one household, even if you physically separate yourselves in the home.
You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than one month after
the date of the payment.
Exception.
If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree,
or other court order may qualify as alimony even if you are members of the same household when the payment is made.
Liability for payments after death of recipient spouse.Alimony:Payments after death of recipient spouse
If you must continue to make payments for any period after your spouse's death, the part of the payment that would continue is not alimony whether
made before or after the death. If all of the payment would continue, then none of the payments made before or after the death are alimony.
The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the
liability for continued payments would end under state law.
Example.
You must pay your former spouse $10,000 in cash each year for 10 years. Your divorce decree states that the payments will end upon your former
spouse's death. You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. The death of your spouse
would not terminate these payments under state law.
The $10,000 annual payments are alimony. But because the $20,000 annual payments will not end upon your former spouse's death, they are not
alimony.
Substitute payments.Alimony:Substitute payments
If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments, the
otherwise qualifying payments are not alimony. To the extent that your payments begin, accelerate, or increase because of the death of your spouse,
otherwise qualifying payments you made may be treated as payments that were not alimony. Whether or not such payments will be treated as not alimony
depends on all the facts and circumstances.
Example 1.
Under your divorce decree, you must pay your former spouse $30,000 annually. The payments will stop at the end of 6 years or upon your former
spouse's death, if earlier.
Your former spouse has custody of your minor children. The decree provides that if any child is still a minor at your spouse's death, you must pay
$10,000 annually to a trust until the youngest child reaches the age of majority. The trust income and corpus (principal) are to be used for your
children's benefit.
These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. Of
each of the $30,000 annual payments, $10,000 is not alimony.
Example 2.
Under your divorce decree, you must pay your former spouse $30,000 annually. The payments will stop at the end of 15 years or upon your former
spouse's death, if earlier. The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the
difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. For example, if your spouse dies at the end of the tenth
year, you must pay the estate $150,000 ($450,000 − $300,000).
These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000
annual payments. None of the annual payments are alimony. The result would be the same if the payment required at death were to be discounted by an
appropriate interest factor to account for the prepayment.
Child support.Alimony:Child support, difference from
A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation
instrument is not alimony. The designated amount or part may vary from time to time. Child support payments are neither deductible by the payer nor
taxable to the payee.
Specifically designated as child support.Child support:Payment specifically designated as
A payment will be treated as specifically designated as child support to the extent that the payment is reduced either:
On the happening of a contingency relating to your child, or
At a time that can be clearly associated with the contingency.
A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child
support.
Contingency relating to your child.Child support:Contingency relating to child
A contingency relates to your child if it depends on any event relating to that child. It does not matter whether the event is certain or likely to
occur. Events relating to your child include the child's:
Becoming employed,
Dying,
Leaving the household,
Leaving school,
Marrying, or
Reaching a specified age or income level.
Clearly associated with a contingency.Child support:Clearly associated with contingency
Payments are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following
situations.
The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of
majority.
The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children
reaches a certain age from 18 to 24. This certain age must be the same for each child, but need not be a whole number of years.
In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your
child.
Either you or the IRS can overcome the presumption in the two situations above. This is done by showing that the time at which the payments are to
be reduced was determined independently of any contingencies relating to your children. For example, if you can show that the period of alimony
payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can treat the amount as
alimony.
Recapture of AlimonyAlimony:Recapture ruleRecapture of alimony
If your alimony payments decrease or terminate during the first 3 calendar years, you may be subject to the recapture rule. If you are subject to
this rule, you have to include in income in the third year part of the alimony payments you previously deducted. Your spouse can deduct in the third
year part of the alimony payments he or she previously included in income.
The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or
a written separation agreement. Do not include any time in which payments were being made under temporary support orders. The second and third years
are the next 2 calendar years, whether or not payments are made during those years.
The reasons for a reduction or termination of alimony payments that can require a recapture include:
A change in your divorce or separation instrument,
A failure to make timely payments,
A reduction in your ability to provide support, or
A reduction in your spouse's support needs.
When to apply the recapture rule.Alimony:Recapture rule:When to applyRecapture of alimony:When to apply
You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second
year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year.
When you figure a decrease in alimony, do not include the following amounts.
Payments made under a temporary support order.
Payments required over a period of at least 3 calendar years of a fixed part of your income from a business or property, or from
compensation for employment or self-employment.
Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments.
How to figure and report the recapture.Alimony:Recapture rule:How to figure and reportRecapture of alimony:How to figure and reportReporting requirements:Alimony recaptureAlimony:Recapture rule:Determination of (Worksheet 1)Recapture of alimony:Determination of (Worksheet 1)Worksheets:Recapture of alimony (Worksheet 1)
Both you and your spouse can use Worksheet 1
to figure recaptured alimony.
Including the recapture in income.
If you must include a recapture amount in income, show it on Form 1040, line 11 (Alimony received). Cross out received and enter
recapture. On the dotted line next to the amount, enter your spouse's last name and social security number.
Deducting the recapture.Alimony:Deductions:Recapture amountDeductions:Alimony recaptureRecapture of alimony:Deducting
If you can deduct a recapture amount, show it on Form 1040, line 31a (Alimony paid). Cross out paid and enter recapture. In
the space provided, enter your spouse's social security number.
Example.
You pay your former spouse $50,000 alimony the first year, $39,000 the second year, and $28,000 the third year. You complete Worksheet 1
as illustrated (see next page). In the third year, you report $1,500 as income on Form
1040, line 11, and your former spouse reports $1,500 as a deduction on Form 1040, line 31a.
Worksheet 1. Recapture of Alimony
Note.Do not enter less than -0- on any
line.1.Alimony paid in 2nd year1.2.Alimony paid in 3rd year2.3.Floor3.$15,0004.Add lines 2 and 34.5.Subtract line 4 from line 15.6.Alimony paid in 1st year6.7.Adjusted alimony paid in 2nd year(line 1 less line 5)7.8.Alimony paid in 3rd year8.9.Add lines 7 and 89.10.Divide line 9 by 210.11.Floor11.$15,00012.Add lines 10 and 1112.13.Subtract line 12 from line 613.14.Recaptured alimony. Add lines 5 and 13*14.
*If you deducted alimony paid, report this amount as income
on Form 1040, line 11.
If you reported alimony received, deduct this amount on Form 1040, line 31a.
Worksheet 1. Recapture of Alimony—Illustrated
Note.Do not enter less than -0- on any
line.1.Alimony paid in 2nd year1.$39,0002.Alimony paid in 3rd year2.28,0003.Floor3.$15,0004.Add lines 2 and 34.43,0005.Subtract line 4 from line 15.-0-6.Alimony paid in 1st year6.50,0007.Adjusted alimony paid in 2nd year(line 1 less line 5)7.39,0008.Alimony paid in 3rd year8.28,0009.Add lines 7 and 89.67,00010.Divide line 9 by 210.33,50011.Floor11.$15,00012.Add lines 10 and 1112.48,50013.Subtract line 12 from line 613.1,50014.Recaptured alimony. Add lines 5 and 13*14.1,500
*If you deducted alimony paid, report this amount as income
on Form 1040, line 11.
If you reported alimony received, deduct this amount on Form 1040, line 31a.
Instruments Executed Before 1985
Information on pre-1985 instruments was included in this publication through 2004. If you need the 2004 revision, please go to the IRS website at
www.irs.gov.
A qualified domestic relations order (QDRO) is a judgment, decree, or court order (including an approved property settlement agreement) issued
under a domestic relations law that:
Relates to the rights of someone other than a participant to receive benefits from a qualified retirement plan (such as most pension and
profit-sharing plans) or a tax-sheltered annuity,
Relates to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of the
participant, and
Specifies the amount or portion of the participant's benefits to be paid to the participant's spouse, former spouse, child, or
dependent.
Benefits paid to a child or dependent.Benefits paid under QDROs:To childBenefits paid under QDROs:To dependentChildren:Benefits paid to, under QDRODependents:Benefits paid to, under QDROQualified domestic relations orders (QDROs):Benefits paid to child or dependent
Benefits paid under a QDRO to the plan participant's child or dependent are treated as paid to the participant. For information about the tax
treatment of benefits from retirement plans, see Publication 575.
Benefits paid to a spouse or former spouse.Benefits paid under QDROs:To former spouseBenefits paid under QDROs:To spouseQualified domestic relations orders (QDROs):Benefits paid to spouse or former spouse
Benefits paid under a QDRO to the plan participant's spouse or former spouse generally must be included in the spouse's or former spouse's income.
If the participant contributed to the retirement plan, a prorated share of the participant's cost (investment in the contract) is used to figure the
taxable amount.
The spouse or former spouse can use the special rules for lump-sum distributions if the benefits would have been treated as a lump-sum distribution
had the participant received them. For this purpose, consider only the balance to the spouse's or former spouse's credit in determining whether the
distribution is a total distribution. See Lump-Sum Distributions in Publication 575 for information about the special rules.
If you receive an eligible rollover distribution under a QDRO as the plan participant's spouse or former spouse, you may be able to roll it over
tax free into a traditional individual retirement arrangement (IRA) or another qualified retirement plan.
For more information on the tax treatment of eligible rollover distributions, see Publication 575.
The following discussions explain some of the effects of divorce or separation on traditional individual retirement arrangements (IRAs).
Traditional IRAs are IRAs other than Roth or SIMPLE IRAs.
Spousal IRA.Spousal IRA
If you get a final decree of divorce or separate maintenance by the end of your tax year, you cannot deduct contributions you make to your former
spouse's traditional IRA. You can deduct only contributions to your own traditional IRA.
IRA transferred as a result of divorce.
The transfer of all or part of your interest in a traditional IRA to your spouse or former spouse, under a decree of divorce or separate
maintenance or a written instrument incident to the decree, is not considered a taxable transfer. Starting from the date of the transfer, the
traditional IRA interest transferred is treated as your spouse's or former spouse's traditional IRA.
IRA contribution and deduction limits.Deductions:Limits on IRAsIndividual retirement arrangements (IRAs)IRAs (Individual retirement arrangements)
All taxable alimony you receive under a decree of divorce or separate maintenance is treated as compensation for the contribution and deduction
limits for traditional IRAs.
More information.
For more information about IRAs, including Roth IRAs, see Publication 590.
Property SettlementsSettlement of propertyProperty settlementsProperty settlements
There is no recognized gain or loss on the transfer of property between spouses, or between former spouses
