jmallard Posted February 3, 2008 Report Share Posted February 3, 2008 Hi Everyone, I have a client who received a check (Dated Dec 23, 2007) in Dec 2007 for $7000.00 as some sort of settlement payment for Alimony. However, she did not cash the check until Jan 2008. Is this still considered Alimony received in 2007 Tax Year? Thanks. Jerry Quote Link to comment Share on other sites More sharing options...
SUE A. Posted February 3, 2008 Report Share Posted February 3, 2008 I WOULD THINKS SO. I WOULD ADD IT TO 07 IF IT WERE ME. SUE Quote Link to comment Share on other sites More sharing options...
rfassett Posted February 3, 2008 Report Share Posted February 3, 2008 Under the "constructive receipt" rules, she had contol of the funds in 2007 (she chose to not cash the check). If it is income, it is 2007 income. In fact, cashing the check has nothing to do with the issue. She receive a negotiable instrument in 2007. End of story. Ron Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 4, 2008 Report Share Posted February 4, 2008 Hi Everyone, I have a client who received a check (Dated Dec 23, 2007) in Dec 2007 for $7000.00 as some sort of settlement payment for Alimony. However, she did not cash the check until Jan 2008. Is this still considered Alimony received in 2007 Tax Year? Thanks. Jerry Received in '07, counts in '07. Clients choice to not go to bank in '07 doesn't count. Catherine Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 4, 2008 Report Share Posted February 4, 2008 Yep, it's income in 2007. Quote Link to comment Share on other sites More sharing options...
jmallard Posted February 4, 2008 Author Report Share Posted February 4, 2008 Thanks for the responses This was my thinking also - it is 2007 Income. Guess I'm a big soft hearted guy - I was hoping it could go on 2008 Income because my client is a divorced lady with kids and having a hard time. But, that's why I asked here - didn't want to make a big mistake on her taxes. Thanks again. Jerry Quote Link to comment Share on other sites More sharing options...
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