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Thread: Garnishment for Alimony Maryland

  1. #1
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    Default Garnishment for Alimony Maryland

    Has anyone ever heard of Alimony being pre-taxed? I was approached today by an employee who said that he was told his alimony should be pre-taxed. He explained that his ex has to pay income on it and he has already paid income on it and he is able to deduct the alimony payments and it would be easier to have it pre-taxed. I looked into this on the IRS website and I it says "alimony payments are only deductible on Form 1040" that tells me that you may not take alimony payments out pre tax. Am I correct in this thinking?????

  2. #2
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    First I have heard of this and I have been doing this a long time. I have read the CCPA law (which controls child support) and this is not mentioned. Ask your "attorney" to site his/her/its source.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

  3. #3
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    Something doesn't sound right about this unless someone is talk capital gains tax. I know in some instances you can pre-pay projected income tax, but I have heard very little about that.
    I don't believe what I write, and neither should you. Information furnished to you is for debate purposes only, be sure to verify with your own research.
    Keep in mind that the information provided may not be worth any more than either a politician's promise or what you paid for it (nothing).
    I also may not have been either sane or sober when I wrote it down.
    Don't worry, be happy.

    http://www.rcfp.org/taping/index.html is a good resource!

  4. #4
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    He deducts the payments on his 1040. Alimony is tax deductible for federal income tax. However, it is still taxable for FICA, Medicare, FUTA, etc. and cannot be taken as a pretax deduction. You have a duty to include it in income and withhold taxes on it. He doesn't get the deduction in advance, any more than you get your mortgage interest deduction in advance. Tell him to find a source that says it can be taken pretax.
    Last edited by ferretrick; 09-14-2017 at 06:33 AM.

  5. #5
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    One other thing he can do is adjust his federal withholding to minimize the overpayment of federal income taxes. He should speak with a tax specialist who can help him run his own personal numbers to see what that should be for him. (for those that want a pointer, you can always put S99 or M99 + a specific amount per check, but have to realize that amount will come out of every check, even one that is not a regular amount). As long as payroll gets a "valid" W-4 which means filled out and signed correctly NOT what is actually in the boxes, they should work with it. May take up to 30 days for them to make the change though depending on their payroll processes.

    Of course you don't want to give tax advice, but you can point him in the right direction!

  6. #6
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    Also in MD and had an employee try this argument. Nope, it gets taxed. Lots of money gets "taxed twice". Anything or anyone you pay with money you earned from a job where taxes are withheld is taxable income to them. This is no different.
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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