Reporting Alimony Received on Income Taxes

Alimony is a tricky issue in a divorce case.  Many people want it (or don't want to pay it) but the tax implications of alimony are important to note and consider in the negotiation of your divorce settlement.  In general, alimony is taxable income to the recipient and is a deduction for the payor.The Tax Girl, Kelly Phillips Erb, recently answered a question on her tax blog about claiming alimony on your income tax return.  It's a quick and short read, but provides some good guidance on the importance of claiming alimony received on your income tax return even if that is the only income you had for the year.