Alimony and taxes

[vishalshah]

I got a mutual consent divorce in july 2010.
At the time i was residing in US on H1B (i am sill in Uson h1b) and my wife on H4
She has now moved back to india.
I gave her the alimony in form a X$ check drawn from US bank and she deposited it in her account in india.


I am trying to understand what will be the tax implications for her and me.
I understand that if we were both legal US residents then if i deduct the alimony on my return she would have to declare it as income on her return.
However, i am still a legal US resident, but she has moved to india.

1. can i deduct the alimony from my taxable income?
2. So If i can and do deduct the alimony from my income, how does that money get treated on her part. Does that money get treated as both US and india income for her ? Does she have to file return in US and India both and pay taxes on that alimony amount both in india and US?
3. If i do not deduct the alimony from my taxable income, will she then be exempt from declaring that alimony as income on US/India return? (ofcourse i would have to pay taxes on it in this case) she has gone through a lot and i'd like to see if i can save her from having to pay taxes

FYI, i paid her the money after the divorce decree was issued

[abhayg4]

Hi Mr. Vishal,

As you are posting this question , I think 3rd or 4th time....I will advise you to consult a tax consultant/CA - and they will be the best people to give you a proper answer and how you and your ex-wife can save money on taxes etc.

You can take the opinions of others in this forum but still I think you should contact a tax consultant.

Thanks and Regards,
Abhay