Tax Question: Married filing separate and spousal support

[hajario]

The situation. Chuck and Mary are in the process of divorce but for various reasons, the divorce won’t be final until mid-2008. As such, although they are separated, they are considered to have married status for tax purposes for the year 2007.

Chuck and Mary have agreed to file their taxes separately in 2007 (married filing separate.) Chuck has agreed to pay Mary $2000 a month in spousal support.

If C and M were divorced this year, C would be able to write off the spousal support and M would have to pay taxes on it. Is this still the case if they are married filing separately? Would he give her a 1099?

Thanks.

[KneadToKnow]

You have described the situation I am in exactly, so I will be watching this thread eagerly.

[hajario]

@KneadToKnow

You have described the situation I am in exactly, so I will be watching this thread eagerly.

Is that you, Chuck?*

*cheap excuse for my one bump

[ENugent]

IRS Publication 504

Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. It does not include voluntary payments that are not made under a divorce or separation instrument.

Alimony is deductible by the payer and must be included in the spouse’s or former spouse’s income. Although this discussion is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony.

(emphasis added)

It sounds to me like the amount is deductible for Chuck and taxable for Mary if there is a written separation agreement.

I am not a tax lawyer, and this should not be considered reliable legal advice. Chuck and Mary should consult their lawyer(s) for legal advice.