Anyone have any experience with collecting local tax and medicare tax on alimony? Wife is ordered to pay tax on alimony but the only way to get local and Medicare taxes is for her to reimburse me. There is no way to get this done on the forms. Thx.
I am only familiar with seeing alimony taxed when you add it to income on Federal and State tax forms. Usually medicare is taken out of gross earnings by employer, and local (as in city or municipal) taxes often don't involve a filing.
I suspect you may be over analyzing there a bit. If she declares it as income on all forms filed, I would find it doubtful she could be found in willful contempt for not paying medicare or city taxes, and I don't see a city coming after her for the local taxes. But perhaps someone on here knows more about this than I do -- my knowledge of city taxes is limited to a couple of places, and no tax forms had to be sent in where I lived.
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Thx for helping. Yes Medicare and city tax are taken out of gross and no way to get money pretax. There is no tax forms for either to be refunded to me or collected from her. The court order is that she is responsible for tax on spousal support. It doesn't just say state and federal only. She has to reimburse me for the taxes directly. This is 4% tax on 2 million dollar judgement so it's not just something I can let slide if I can help it. My attorney said "I never thought of that". I had to fire him after he charged me 40,000 for an appeal which has been ongoing since 2010.
There are no medicare or local taxes owed on an alimony payment, therefore she doesn't owe you any reimbursement of taxes paid on the original source of funds used to make the payment. You're trying to connect the dots between a payment and the original income used to fund that settlement when there is no connection.
You are correct. There are no taxes owed because I already paid them. The question arises that since she is ordered to pay income tax on the ordered money ( not a settlement ), why is it just limited to state and federal tax and not all tax when nothing was specified? Income tax is income tax.
Jlong34016 wrote:why is it just limited to state and federal tax and not all tax when nothing was specified? Income tax is income tax.
Have you looked at the relevant tax forms and directions associated with alimony payments? It's very simple and crystal clear. There is one spot for the receiving party to declare the alimony payments as income, and another spot for the payer to declare alimony paid. There is nothing else tax related to an alimony payment so I'm still not understanding your argument that there are additional taxes.
City INCOME tax is her responsibility since she is ordered to pay INCOME tax on alimony. It has been stated on here that Medicare tax is not an income tax even though it is a tax on income. The original question was has anyone been able to collect local income tax on alimony. So far the answer has been no.
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