Alimony Recapture Calculator
It is getting close to tax time. Is your alimony payment deductible? To prevent taxpayers from disguising non-deductible property settlements as disguised alimony, the Internal Revenue Code sets up certain rules for the first three years of alimony payments. If your alimony significantly decreases in the first three payments, the IRS will recapture some of it and disallow the deduction. Of course if you are receiving alimony, that may be a good thing because part of your alimony will not be taxed as income. The rules are hopelessly complex, but you can test your alimony settlement easily with this deductible alimony calculator at smartmoney.com.
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