What is the Recapture Rule? If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. The reasons for a reduction or end of alimony payments that can require a recapture include:
The recapture rule forces the alimony payer, usually the ex-husband, to report as income the alimony payments he previously deducted, which means the ex-wife is entitled to reduce from income the alimony payments she previously received. When does the Recapture Rule Apply? The rule applies when the payments decrease or terminate during the first three calendars years post-divorce and: 1.) The total payments made in the third year decrease by $15,000 or more from the payments made in the second year; or 2.) The payments made in the second year and the third year are substantially less than the payments made in the first year. Recapture Rule & Filing Taxes: a) Including the recapture amount in your income: If you must include a recaptured amount in income, show it on Form 1040, line 11 (“Alimony received”). Cross out “received” and enter “recapture.” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. b) Deducting the recapture amount: If you can deduct a recaptured amount, show it on Form 1040, line 31a (“Alimony paid”). Cross out “paid” and enter “recapture.” In the space provided, enter your spouse's SSN or ITIN. Exceptions to the Recapture Rule? The Recapture Rule does NOT apply to the following:
If you need to speak with a family law attorney in regards to alimony, contact Adkins Law. Adkins Law has offices in Huntersville and Ballantyne for your convenience.
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Step 1. Determine which payments you made qualify as alimony. Payments that are NOT alimony: Not all payments under a divorce or separation instrument are alimony. Alimony does not include:
Requirements for a payment to be alimony:
General Rules for alimony payments:
Step 2. Mark down alimony payments made or received on your taxes: a) How to Deduct Alimony Paid on your Taxes:
b) How to Report Alimony Received on your Taxes:
For more information go to https://www.irs.gov/publications/p17/ch18.html. If you would like to speak with a family law attorney in regards to alimony, contact Adkins Law. Adkins Law has offices in Huntersville and Ballantyne for your convenience. Step 1. Go to the clerk of court in the county you live in to request a name change to the birth certificate. You will receive an order approving the name change from the clerk, which you will submit with the application to NC Vital Records. Step 2. You must complete the Birth Certificate Application form, you can download the application online at http://vitalrecords.nc.gov/documents/Appl_BirthCert_GN_fill-in_20150504.pdf. You must include a certified copy of the name change court order along with your request. Step 3. Mail your Birth Certificate Application form with a $24 search fee (nonrefundable) and a $15 processing fee to NC Vital Records. North Carolina Vital Records 1903 Mail Service Center Raleigh, NC 27699-1900 Note that there is an additional charge of $24 for the first copy of the requested certificate, and $15 more for each additional copy of the same certificate. For any further questions about amending a birth certificate go to http://vitalrecords.nc.gov or call NC Vital Records at (919) 733-3000 If you need to speak with a family law attorney in Huntersville or Ballantyne, contact Adkins Law to arrange a consultation. How do I change my name after getting married in North Carolina? Step 1. You’ll need a certified copy of your marriage license in order to change your name on your driver’s license and your Social Security card. Wait at least a few days after the ceremony is performed to allow sufficient time for your license to be returned to the Register of Deeds. Step 2. Request your certified copy of your marriage certificate online, by mail, or in person at the Register of Deeds in your county. For Mecklenburg County’s online application go to https://meckrod.permitium.com/mc/application. Step 3. In your request, include the name of each partner, date of the marriage, the address where copies should be mailed and include a copy of your government issued ID. Certified copies of your marriage license are $10 each. Check or cash will be accepted. Step 4. Present the certified copy of your marriage license along with other required documentation to the Social Security Administration. After applying for a new Social Security card, you should wait at least 24 hours before going to the Department of Motor Vehicles to update your driver's license. The Social Security Administration Charlotte Office is located at 2201 Coronation Blvd Suite 100 Charlotte, NC 28227. Their phone number is 1-800-772-1213. Adkins Law has offices in Huntersville and Ballantyne. To arrange a consultation with a family law attorney, contact Adkins Law. BE PROACTIVE If you are considering a divorce you will want to be proactive and make sure you are taking the right steps to ensure a positive outcome. Contacting an attorney is a good first step. Your attorney may recommend that you seek marriage counseling even if you don’t think your marriage can be saved. A divorce is a major life event and a counselor can help you navigate the emotional ups and downs you will likely experience. Your attorney will discuss the laws specific to your state and the steps that you should take to ensure the most favorable outcome to your divorce proceeding. STAY IN YOUR HOME Until you speak with an attorney, you should not move out of your home unless it is an abusive situation. In situations of abuse, you should always put the safety of you and your children first. Leaving your home without reason, could be considered abandonment and could jeopardize spousal claims for support. In NC, abandonment means that a spouse has moved out with the intent to cease co-habitation. Abandonment can also impact the custodial rights of the abandoning spouse. By leaving the children with your ex, you are essentially saying that they are capable and fit to raise the children. In addition, if you leave, you may be unable to return to the house until the property has been divided which could take a year or even more in some cases. SAFEGUARD YOUR ASSETS An attorney can guide you on how to best protect your assets. You will want to take possession of certain types of assets like cash, collectibles, jewelry, etc. that your spouse might try to liquidate. Your attorney might also suggest closing joint bank accounts and credit cards. NC DIVORCE LAW Some states are “Fault” states meaning that the judge will consider the actions of the “guilty” spouse to determine if there are grounds for divorce. In “No Fault” divorce states the judge does not consider the actions of the spouses. All that is required is that one party wishes to end the marriage. NC is a hybrid state – judges can consider marital misconduct or “incurable insanity” but can also dissolve a marriage if one spouse has determined the marriage can’t be saved. WHAT TO EXPECT A No-Fault divorce in NC requires two things. First, you must live separate and apart from your spouse for one full uninterrupted year. Second, at least one of you must have lived in NC for the six month period prior to filing the divorce papers. Adkins Law has offices in Huntersville and Ballantyne. If you need to schedule an appointment to meet with a divorce attorney, contact Adkins Law. A person who dies without a will is referred to have died intestate. The court will distribute the decedent’s estate to the surviving spouse first and then remaining balance will be distributed to the decedent’s descendants by using the Per Capita at Each Generation method. The court follows the intestate rules provided under the North Carolina General Statute (“NCGS”). Spouse’s portion of the decedent’s estate: NCGS 29-14 provides the rules for what portion of real property and personal property the surviving spouse shall receive from the decedent’s estate. Real Property For real property the following rules apply under NCGS 29-14(a). First, if the decedent has no surviving children or grandchildren and their parents are also deceased, then the spouse receives all of the real property. Second, if the decedent has one child or any lineal descendant (grandchild) of a deceased child that has survived them, then the spouse receives only one-half interest in the real property. Third, if there is: two or more children, one child and any lineal descendant of one or more deceased children, or lineal descendants of two or more deceased children that has survived the deceased; then the spouse receives one-third interest in the real property. Lastly, if there are no surviving children or lineal descendants but one or both of the parents survived the deceased, then the spouse receives only one-half of the real property while the remaining portion goes to the surviving parent or parents of the deceased. Personal Property For personal property the following rules apply under NCGS 29-14(b). First, if the decedent has no surviving children or grandchildren and their parents are both deceased then the spouse receives all of the personal property. Second, if the decedent has one child or any lineal descendant (grandchild) of a deceased child that has survived the deceased, then the spouse receives the first $60,000 plus one-half of the remaining balance of personal property. Third, if there is: two or more children, one child and any lineal descendant of one or more deceased children, or lineal descendants of two or more deceased children that has survived the deceased; then the spouse receives the first $60,000 plus one-third of the remaining balance of personal property. Lastly, if there are no surviving children or lineal descendants but one or both of the parents survived the deceased, then the spouse receives the first $100,000 plus one-half of the remaining balance of personal property while the remaining portion goes to the surviving parent or parents of the deceased. Surviving children and lineal descendant’s share: Under NCGS 25-16 provides that the court shall use the Per Capita at Each Generation method to distribute the remaining portion of the decedent’s real and personal property. The Per Capita at Each Generation, provides the initial division of shares of interest is made at the closest generation at which one or more descendants are alive, but the shares of the deceased persons on that generational level are treated as one group and are dropped down and divided equally among the representatives in the next generation. Note that NC does not recognize step-children to take if their step parent dies intestate. However, NC treats half-blood and whole-blood descendants the same. If you would like to speak with an estate planning attorney in regards to drafting a will, please contact Adkins Law for a free estate planning consultation. Adkins Law has offices in Huntersville and Ballantyne for your convenience. At Adkins Law, we believe in providing top-notch, quality legal services at affordable prices. If you need to speak with an attorney regarding a family law matter, traffic citation or issue, or for your estate planning needs, contact Adkins Law to arrange a consultation. Adkins Law has offices in Huntersville and Ballantyne for your convenience. Congratulations to Huntersville Attorney Christopher Adkins for receiving an award from the American Institute of Legal Counsel for being one of the top 10 attorneys in North Carolina for client satisfaction for DWI / DUI legal representation.
If you need to speak to a Huntersville DWI / DUI attorney in reference to a legal matter, please contact Adkins Law to arrange a consultation. Adkins Law is located in Huntersville NC and can arrange for you to speak with an experienced Huntersville traffic lawyer in regards to your traffic matter. |
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