I am anticipating to pay a total of $63,000 in spousal support next year. How much would I get back to the dollar. I am claiming zero on filing my tax return and making a gross annual of $100k, 25% of this go to charity.
2007-12-19 15:15:54 · 5 answers · asked by allem a 1 in Business & Finance ➔ Taxes ➔ United States
As I understand it, you are making $100,000, $63,000 goes to your ex-spouse, and you donate $25,000 to charity.
That means your adjusted gross income is $18,500. If you have no dependants and are still single, then only $9,700 is taxable. That means you have to pay $1,068 in taxes.
To figure out how much you are getting back, we would need to know how much federal taxes has already been paid/withheld.
2007-12-19 15:37:43 · answer #1 · answered by j-man 4 · 0⤊ 0⤋
The spousal support is deductible by you as an above the line adjustment. That will reduce your taxable income. The tax reduction will depend upon your total tax picture as will any refund.
You won't be able to get a charitible deduction for $25,000 if you have spousal support of $63k. Your maximum deduction will be limited to 50% of your AGI or about $18,500.
If you are claiming $63k in spousal support and $25k in charitable donations, expect an audit. Those numbers are WAY high.
A VERY rough cocktail napkin guess on your tax liability, assuming the spousal support and the max charitable deduction of $18,500 would be $1,874. With zero withholding through the year, about $21,560 would have been withheld from your pay for Federal income taxes. That would give you a refund of $19,686.00
Another audit flag will be your cash flow. $100k - $21,560 - $63,000 - $18500 = -$3,060. The IRS will be interested in knowing how you supported yourself with a negative cash flow.
2007-12-19 15:36:10 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If the spousal support is ordered by a court document, it's treated the same as alimony even if the couple is not divorced yet. The payer deducts it on their return; the receiver adds it their return.
If there is no court document, it's not deductable.
2007-12-19 19:27:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
allem a said "I am anticipating to pay ....spousal support next year."
Can he claim deduction on his 2007 return?
Also what is spousal support? Are there some requirements to be deductible?
2007-12-19 18:46:48 · answer #4 · answered by MukatA 6 · 0⤊ 0⤋
It bothers me to no end that spousal and child support is tax-deductible for the payer, but the payee has to cough up.
Don't worry about only having 100K and not paying ANY income tax--there's plenty of ten-dollar-an-hour guys to pay your share for you.
2007-12-19 15:25:53 · answer #5 · answered by Pagan Dan 6 · 0⤊ 5⤋