Frequently
Asked Questions
-
Alimony
- The term alimony refers to a legal obligation
imposed on one divorced spouse to make monetary
payments to the ex-spouse. Differing terms such
as maintenance, maintenance and support, or
spousal support are used to designate alimony.
For federal tax purposes the terms are
interchangeable.
Bad Debt - I gave my friend a loan to do business, but the business went bankrupt and she did not pay me back. Can I deduct this bad loan? If someone owes you money that you cannot collect, you have a bad debt.
Workers' Compensation - Workers' compensation (workers' comp) is a form of insurance that provides wage replacement and medical benefits for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. Alabama was one of the first states to enact an Employer Liability Act in 1855.
