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New Tax Deductions to Look For

It`s alwasy nice to find out how you can be saving money on your taxes. The newest developments in tax deductions are for those parents or ex`s that now find themselves paying child/family support and alimony. And for those of you who must pay these costs of divorce, finding out that you have a deduction coming your way is a pretty great thing. Tax Smart America? reported today that an important tax court case heard in San Diego California, the United States Tax Court has held that some portion of family support payments are considered to be tax deductible as ?alimony? payments.

In the case, BERRY vs. COMMISSIONER T.C. Memo 2005-91 the United States Tax Court held that some portion of what was defined as family support payments are to be considered tax deductible as ?alimony? payments as determined under the facts in this case. The case will have a significant impact on family support settlements, court orders regarding family support payments, and the fact that many taxpayers may now be able to amend prior year tax returns for this issue and claim refund of overpaid taxes related to deductions that may now be claimed under this decision.

The case was heard last year and was decided in favor of the taxpayer, in what many are calling an important case that will have far reaching impact on family law settlements. According to San Diego Family Law Attorney, Robert J. Steinberger, ?this case will cause some need for review in support settlements in many divorce cases.? Tax Smart America? Business Center spokesman, Daniel Love indicates that efforts will now begin to educate the tax professional community as well as the public that they may have overpaid tax refund claims resulting from this decision for as much as the past three years.