Please read on, then contact one of our experienced alimony and spousal support attorneys in Bergen County, NJ to learn if you can write off alimony or spousal support on your taxes in New Jersey.
Can alimony be deducted from your taxes in New Jersey?
In 2018, the tax laws were changed, and alimony is no longer taxable to the recipient and deductible to the person paying. However, this does not necessarily end the query, because these tax laws only apply at the federal level. The state of New Jersey still permits alimony payments to be deducted from state tax payments. Several factors go into the calculation of alimony, including any tax issues that either party may face as a result of the divorce or separation agreement.
What are the requirements for alimony to be deducted from taxes in New Jersey?
In order for you to deduct your alimony payments from your state taxes, you will need to establish that the payments are, in fact, alimony. The requirements are as follows:
- You and your former spouse must not file a joint tax return
- The payment must be in cash, check or money order and not a lump sum payment
- The divorce decree or property settlement agreement must not say that the payment is not alimony
- You and your former spouse must not live in the same house when the alimony payments are being made
- There must be no requirements that the alimony payments must continue after the death of either spouse
- The payment must not be treated as child support, i.e. that payments do not end after a child reaches a certain age or when a certain event occurs relating to a child
- Under the divorce decree or property settlement agreement, your alimony payments are mandatory
How do you take a tax deduction for alimony in New Jersey?
You must use Form 1040 (not Form 1040A or Form 1040EZ). The deduction must be reported on line 31a. You must provide the Social Security number of your former spouse who is receiving the alimony payments on line 31b of your federal income tax return. You should reach out to one of our skilled Bergen County, NJ family law attorneys for assistance in preparing and filing the paperwork.
Contact our experienced Bergen County firm
At Townsend, Tomaio & Newmark, our attorneys have extensive experience helping clients to understand and protect their legal rights before, during, and after the divorce process in towns across New Jersey and Bergen County, including Hackensack, Ridgewood, Paramus, Teaneck, and Fort Lee. To speak with our team of divorce lawyers today in a free and confidential consultation regarding your concerns about your divorce, please contact us online, or through our Hackensack, NJ office at (201) 397-1750.