Is spousal support taxable when it is received?

In Wisconsin, spousal support, or alimony, is usually taxable when it is received by the recipient. According to the Wisconsin Department of Revenue, when the same taxpayer pays and receives spousal support, it is taxable to the recipient and deductible from the payer. Although each case is different, most commonly, the court decides which party should pay and receive spousal support. Generally, it is up to the payer to report and pay taxes on the spousal support they receive. The amount of taxes paid is based on whether the spousal support is considered taxable income by the Internal Revenue Service (IRS). Generally, any support provided is taxable to the payer if it is paid in cash, is part of a written agreement, or is ordered by a court. If the spousal support is paid through a third party, such as a lawyer or a business, then the income is taxable to the recipient. In some specific cases, spousal support may not be taxable when it is received. If the spousal support is part of a pension or other retirement plan, the recipient may not be taxed on the money. Additionally, property or assets received from an ex-spouse may not be taxable when it is received. In sum, spousal support is usually taxable when it is received in Wisconsin. However, each case may be different, depending on the specifics of the arrangement. It is important to consult with a knowledgeable attorney or accountant who can help determine the tax implications of any spousal support arrangement.

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Is spousal support taxable when it is received?

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