ESTIMATED TAXES
For many people receiving alimony, for the first time they will experience the need to make quarterly estimated taxes. Most of us are used to receiving our income in the form of a W-2 – with withholding taxes as part of that process. Thus, your taxes (whether some or all) are covered by withholding against your salary. Alimony payments are not subject to withholding. Thus, depending on various factors such as the amount of the alimony and whether or not you have other income, it is very possible that you will need to make quarterly estimated tax payments. Keep in mind that the obligation to make estimated tax payments will probably be not only to the IRS but also to your state.
