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Topic: Is this considered "income"?  (Read 1092 times)

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Is this considered "income"?
« on: January 19, 2012, 04:44:54 PM »
I don't know if anyone can answer this, but here goes. I will try to make it short and sweet!

I left my ex-husband in July 2010. For the next 14 months, I camped out at my parents' house in between visits to England. (from July 2010 to September 2011).

I moved here (England) in September 2011 on a fiancee visa. We were married in October.

I have not worked since leaving my ex. However, my ex-husband is paying me monthly installments, (NOT alimony), but as part of our property settlement. Last year, I received approximately $16,000 from him.  He is court-ordered to continue making monthly payments to me for the next 2 years.

Two questions:

1. Is this considered "income" for tax filing purposes?

2. Can I file "single" even though I am married? (I know I could do this if married to a USC. I just thought, if I am able to do this being married to a UKC, I would, as it would be infinitely easier paperwork-wise.)

Thank you!
British Citizenship approval: May 2016
Ceremony: July 2016
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Well, she was an American girl, raised on promises.
She couldn't help thinking that there was a little more to life, somewhere else.
After all it was a great big world, with lots of places to run to.
And if she had to die trying she had one little promise she was gonna keep.

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Re: Is this considered "income"?
« Reply #1 on: January 19, 2012, 04:49:16 PM »
Don't know about 1, but you can't file as single if you are married. You can file as married filing separately so that none of your husband's income needs to be included.
Arrived as student 9/2003; Renewed student visa 9/2006; Applied for HSMP approval 1/2008; HSMP approved 3/2008; Tier 1 General FLR received 4/2008; FLR(M) Unmarried partner approved (in-person) 27/8/2009; ILR granted at in-person PEO appointment 1/8/2011; Applied for citizenship at Edinburgh NCS 31/10/2011; Citizenship approval received 4/2/2012
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Re: Is this considered "income"?
« Reply #2 on: January 21, 2012, 08:51:57 AM »
Ah, yes that is what I meant  - "married filing separately". I know that's not what I said, but that is what was in my head. LOL!!  Don't people read minds, anymore? HEE!  Thank you, DrSuperL99. :)
British Citizenship approval: May 2016
Ceremony: July 2016
**************************************************************
Well, she was an American girl, raised on promises.
She couldn't help thinking that there was a little more to life, somewhere else.
After all it was a great big world, with lots of places to run to.
And if she had to die trying she had one little promise she was gonna keep.

Comprehensive CV/Résumé Preparation
Writing, Proofreading & Editing Services
www.thewordsmithdesk.co.uk


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Re: Is this considered "income"?
« Reply #3 on: January 21, 2012, 10:58:43 AM »
Alimony is tax deductibke to the payor. Aliminy received in the UK is tax free under the US/UK tax treaty.

So if the court agrees your ex could have a tax deduction and you could have tax free income.

This does not sound like what you agreed. You may want to ask your attorney if they looked at the advantages of using the tax  treaty in agreeing your award.


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Re: Is this considered "income"?
« Reply #4 on: January 21, 2012, 08:58:38 PM »
No, that was not the case. My ex didn't even know I was moving to the UK at the time. It is not alimony, just a property settlement.
British Citizenship approval: May 2016
Ceremony: July 2016
**************************************************************
Well, she was an American girl, raised on promises.
She couldn't help thinking that there was a little more to life, somewhere else.
After all it was a great big world, with lots of places to run to.
And if she had to die trying she had one little promise she was gonna keep.

Comprehensive CV/Résumé Preparation
Writing, Proofreading & Editing Services
www.thewordsmithdesk.co.uk


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Re: Is this considered "income"?
« Reply #5 on: January 22, 2012, 08:05:29 PM »
Hello Fallgal,
No gain or loss is recognized on property settlements and transfers between spouses or former spouses. Transfers are considered incident to divorce if they are made within one year after the date the marriage ends "or" made under an original or modified divorce or separation agreement within six years after the date the marriage ends.

Your US filing status in 2011 is either married filing jointly or married filing separately. Your husband may join your US tax return by election. In addition, he'll need to file for an ITIN. There may be tax advantages to filing jointly as compared to filing separately. You'll need to make that determination in consultation with your US tax professional. I hope this helps.
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Re: Is this considered "income"?
« Reply #6 on: January 22, 2012, 09:52:01 PM »
Thank you all very much for your help. It is very much appreciated. :)
British Citizenship approval: May 2016
Ceremony: July 2016
**************************************************************
Well, she was an American girl, raised on promises.
She couldn't help thinking that there was a little more to life, somewhere else.
After all it was a great big world, with lots of places to run to.
And if she had to die trying she had one little promise she was gonna keep.

Comprehensive CV/Résumé Preparation
Writing, Proofreading & Editing Services
www.thewordsmithdesk.co.uk


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