- 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