By: Sara Prose, Esq.
Did you know that attorney’s fees paid for obtaining and/or collecting alimony can be tax deductible?
Example: You pay your attorney a fee for handling your divorce and an additional fee that is for services in getting and collecting alimony. You can deduct the fee for getting and collecting alimony, subject to the 2% limit, if it is separately stated on your attorney’s bill.
The example provided above is from IRS publication 504, a useful tax resource for divorce and separated individuals. To review the publication, go to:
http://www.irs.gov/publications/p504/ar02.html#en_US_2010_publink1000175957.
As always, you should work with your accountant or tax preparer to address your particular tax situation.
If you are in need of legal advice concerning alimony and/or any other family law matter, please do not hesitate to call Mary Ellen Flynn at 301-563-6685 or email at meflynn@a-f.net.