Legal Question in Family Law in California
My ex husband paid a portion of my attorney fees last year for a child custody
case. He is a tax accountant by profession. I received a Form 1099 on the mail
of the amount he paid to my attorney. Of course he sent these checks to the
law office and not to me. I told my H and R accountant (who is very honest or new to her job). She said she will file it as added income. I cannot and do not know
how to reason with her not to include in my in come tax return. How do I go about this?If I file this 1099, can I offset it as its technically not my income but those checks are not written with my name on it and I did not cash those checks so those are not my income.
3 Answers from Attorneys
I guess you could always pay another accountant to do your taxes for you who is willing to sign even though the return is not accurate. Those attorney fees were paid on your behalf to your attorney, so to come up with the idea that because it wasn't paid to you and you didn't pay the check does not mean that money paid isn't attributable to you is misguided. I applaud this accountant for refusing to sign a tax return with false information. She seems to value her job and ultimately is protecting you.
The issue is whether the 1099 is valid. Attorney fees in family law matters are generally not tax deductible.
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