How do I compute the amount of alimony deducted paid by a tax payer and enter it on a 1040 form?

Answer 1

The payor deducts the actual amount paid in the tax year in the adjustments section on the face of their 1040. The recipient of alimony enters it on line 11 of 2005 form 1040 or whatever line number it changes to for the year in question.

Answer 2

Alimony received by a taxpayer is reported as income on line 11 (2005 form1040). Alimony paid is reported as an adjustment to income on line 31a and the recipient's Social Security Number is required on line 31b. Each year the 1040 forms are changed a bit so it could be a different line number if you are reporting any year other than 2005.

Child support is never reported or included in alimony payments for either party. The recipient reports the amount they received that was ordered by a court. If any additional amounts were paid, they are gifts and never reported by the recipient. The payer may be subject to gift tax if the amount is very large.

Answer 3

If the tax payer was supposed to pay child support you do it a bit different.
Here's the "formula":
Total payments for year - (monthly childsupport * # of months SUPPOSED to pay) = Deductable Alimony.

Did that make sence? If not drop me a line and I'll explain it in more detail.