Don’t pay alimony — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Don’t pay alimony before the first date required under a divorce decree. Why? The Tax Court has ruled that you can’t deduct the payment before it’s legally due. (Ray, TC Summary Opinion 2006-110) You can deduct any payments made after the initial due date, though, even if you make them ahead of time. Note: Nondeductible alimony is not taxable to the recipient.
Keeping up with employment law changes is an important part of your job … and HR has seen an explosion of new rules and regulations from Washington in the past few years. Are you in compliance?...Click here to find out more.