- 7 -7 separate property by a written agreement between the spouses". N.M. Stat. Ann. sec. 40-3-8A(3), (5). The record in this case establishes that Kenneth's disposable retired pay is community property, even though Kenneth sought to deduct petitioner's interest as alimony on his 1991 Form 1040. Section 61 provides that, in general, gross income means all income from whatever source derived, including pensions. Sec. 61(a)(11); sec. 1.61-11, Income Tax Regs. The disposable retired pay received by petitioner in 1991 was from a community interest in a military pension and constitutes pension income to her under section 61(a)(11). Eatinger v. Commissioner, T.C. Memo. 1990- 310; Denbow v. Commissioner, T.C. Memo. 1989-92; Lowe v. Commissioner, T.C. Memo. 1981-350. Section 31 provides that the amount withheld as income tax on wages shall be allowed to the recipient of the income as a credit against the income tax. For the purpose of the credit, the recipient of the income is the person subject to the income tax imposed under subtitle A upon the wages from which the tax was withheld. Sec. 1.31-1(a), Income Tax Regs. The regulations explain further that if a husband and wife domiciled in a community property State make separate returns, and each reports for income tax purposes one-half of the wages received by the husband, each spouse is entitled to one-half of the credit allowable for the tax withheld with respect to such wages. Id.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011