Obtaining the Information
During the interview, ask if the taxpayer paid alimony under a divorce or separation instrument. If so, ask the taxpayer for the exact amount, as well as the social security number of the recipient, because the recipient must report the payment to the IRS as income and the two amounts must agree.
Anthony has been divorced for three years. According to his divorce documents, he paid his ex-wife $8,000 during the tax year. As a favor, he also made $4,000 in payments for her vehicle lease so she could keep steady employment. Anthony can take the $8,000 as an adjustment to income, but not the vehicle lease payments, which were not part of the divorce.
For additional information on alimony, refer to the Alimony chapter in Publication 17 and Publication 504, Divorced or Separated Individuals.
To review information related to the software, go to the Volunteer Resource Guide, Adjustments tab.