Tuesday, December 8, 2009
"If you drive too sexy, I'll tax your seat.."
There's an unfortunate fact about alimony and income tax that I didn't know...until recently. Alimony is taxable income. That's bad enough, but I find it particularly irritating that Mr. Ex gets to count the alimony he pays me as a tax deduction. So here's how our little math problem shakes out. California (a community property state) + 30 years of marriage = half of Mr. Ex's income for me - 50% of what I get for the taxman + a tax credit for the dastardly Mr. Ex.
Update on the division of joint assets: Still undivided.