If COBRA payments are required for my ex-spouse through the divorce decree, are...

M

Mark

New member
...they deductible as alimony? My divorce decree states that I am resposible for my ex-spouses COBRA payment. The IRS guidance suggests that this is alimony to me and medical expense to her. My lawyer disagrees. I live in Pennsylvania.
 
Good news.

I say, "Yes".

Why?

A payment to or for the benefit of a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met:

•The payment is in cash or equivalent.
•The instrument does not designate the payment as not alimony.
•The spouses are not members of the same household at the time the payments are made.
•There is no liability to make any payment after the death of the recipient spouse.
•The payment is not treated as child support.

You meet all 5 criteria. I would claim it as alimony paid if I prepared your tax return. I see no reason why not.

Ask your attorney to read IRS Publication 504 (2010) starting on page 14.
 
It is alimony to you. You deduct it, she ADDs it to her return. While it's technically deductible by her as a medical expense, the odds are she can't.
 
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