Tax Court Says Garnished Spouse Payments Not Deductible

Law360, New York (April 27, 2015, 6:04 PM EDT) -- The U.S. Tax Court on Monday sided with the Internal Revenue Service in finding a taxpayer was not entitled to an alimony deduction for payments garnished from his paycheck to satisfy a separation agreement with his ex-wife because the payments would not have terminated upon death.

Colorado resident David Iglicki's wages were garnished to pay off more than $64,000 in spousal support obligations after he defaulted on his obligations under the separation agreement, according to the court's memorandum opinion. In Colorado, collections of court-ordered payments are not hindered by death, so the payments fail to meet one of the conditions needed...

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