Originally from ticket #9071.
How do you enter alimony into retirement planner. It is an expense that is tax deductable reducing income.
Hi Greg,
If the alimony is before retirement starts, then it's not relevant to the retirement analysis.
If you are referring to alimony paid during retirement, then we don't have a way to make
that reduce income taxes / reduce gross income directly.
You can indeed enter it as a special expense though.
One idea would be to determine the net effect of the alimony including the tax / income impact.
Let's say alimony was $10,000 a year and reduced their taxes by $2000.
Then enter only $8000 as the net alimony expense on Special Expenses.
Would that work???
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Tim,
I just went ahead and reduced my retirement income by ailimony paid, since
it is completely tax deductible. Since 50% of marriages end in divorce you
may want to add alimony as a separate field and just have it reduce income
pre-tax.
Greg
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Clarification:
I just reduced my social security income by alimony paid.
Sent from my iPad