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Alimony can be a one-time receipt or a periodic receipt or a combination of both. It is not specifically covered in 'income' as defined under the Income Tax Act, 1961 ('the Act') and there is no specific provision which governs its taxability. However, if alimony is paid on a monthly basis, it is treated as a revenue receipt and in certain countries it is deducted as tax.
What else can I help you with?
If you overpaid state tax by making estimated payments is your state tax refund taxable?
Some of the refund amount could be taxable if you itemized deduction in the year and claimed the estimated tax payments as a part of your itemized deduction for that year.
Can money donated to charity be claimed on a tax deduction sheet in the US?
It depends which state, what charity, time of the year, and the purpose of the charity. Most often charity money can be claimed on a tax deduction sheet in the U.S.
What is the maximum standard deduction this year for a person who is not claimed as a dependent by another person?
The standard deduction for the Single filing status for a person not claimed as a dependent by another person is $5,450 for 2008 tax returns. This deduction increases to $5,700 for 2009 tax returns. This is in addition to the personal exemption amount of $3,500 for 2008 tax returns [$3,650 for 2009].
What kind of documentation is required to claim a tax deduction for a car donation?
For any deduction claimed over $500 you must attach an IRS form 8283 to your itemized return.
IRS asking for proof of home improvements?
I am going to assume you mean "Why is the IRS asking for proof of home improvements?" You must have claimed a deduction for home improvements on a prior tax return. The IRS is asking for verification of the amount of deduction you claimed.
I received a refund from my state taxes in 2009. Do I need to report this refund on my federal tax for 2010?
You do if you claimed your state income tax as a deduction last year. This is line 10 on form 1040 If you took the standard deduction, you don't.
What does double deduction mean?
Double deduction often refer to a tax relief. In computing your profit, we would have claimed an expense to arrive at the profit. Some countries provide an additional deduction on the same expense against you net profit to arrive at your taxable income. Thus the term DOUBLE DEDUCTION.
What does double deduction means?
Double deduction often refer to a tax relief. In computing your profit, we would have claimed an expense to arrive at the profit. Some countries provide an additional deduction on the same expense against you net profit to arrive at your taxable income. Thus the term DOUBLE DEDUCTION.
What is an example sentence with deduction?
Watson, you've hit upon yet another brilliant deduction! My tax return could use such a brilliant deduction... I don't recognize this automatic deduction that is listed on my paycheck.
Is a rainbow vacuum a medical tax deduction?
No, a rainbow vacuum is not a medical tax deduction.
What is the standard deduction for a child on my tax return?
The standard deduction for a child on your tax return is 1,100 for the 2021 tax year.
Which reduces your tax liability more, a deduction or a credit?
A tax credit reduces your tax liability more than a deduction.
