Lexington, MA: 781.274.6600
Sunapee, NH: 603.763.0350
Inquiry Form
Tax Tips - Save on Taxes

Alimony

Individuals who receive alimony from their ex-spouses usually have no Federal or State income taxes withheld from their alimony compensation.

Such individuals should make estimated income tax payments on the alimony income they receive quarterly. Otherwise, they may receive huge, unexpected income tax bills when their income tax returns are filed the following April. Please refer to the Sidebar Estimated Tax Payments. However, there are a couple of important differences that you should take into account:

  1. Income
    Add the alimony payments that you received during the quarter. This is your Net Income.

  2. Federal Self-Employment Tax
    You can skip Step 4(b) of this calculation, as Federal Self-Employment Tax is not applicable to alimony income.  

 

 

 

 

 

 

 

Return to Top

Home | Company | Clients | Services | Partners | Retirement | Testimonials | Tips | Resources | Contact
Copyright © 2010 - - All rights reserved. TwardyCPA.com & the TwardyCPA Logo are trademarks of Joseph T. Twardy, Jr., CPA, LLC.