| name | tax-summary-spousal-support |
| language | en |
| description | Produces structured financial summaries from tax returns, W-2s, 1099s, K-1s, and business filings for spousal support proceedings. Trigger when preparing income analyses for alimony discovery, settlement negotiations, pre-trial, or court filings in family law matters. |
| tags | ["analysis","litigation","summarization","summary"] |
Tax Summary for Spousal Support
Extracts income sources, deductions, tax liabilities, and multi-year trends from tax records to assess financial capacity, ability to pay, or need for support.
Prerequisites
- Tax returns — Federal (1040) and state for 2–3 most recent years minimum
- Income documents — W-2s, 1099s (all types), K-1s, Schedules C/E/F
- Business returns — 1065, 1120-S, or 1120 if party owns business interests
- Party identification — Petitioner, respondent, or both
- Jurisdiction — State governing support calculation (affects income definitions)
Quick Start
- Collect all available tax documents and identify gaps
- Determine party and jurisdiction
- Follow the output structure below, citing form and line for every figure
- Flag support-relevant adjustments where tax income diverges from economic income
Output Structure
1. Executive Overview
Multi-year table with: gross income, AGI, taxable income, total tax liability (fed + state), effective tax rate, net after-tax income, and trend direction (↑/↓/→) for each metric.
2. Income Source Breakdown
Per year, itemize each source with amount, percentage of total, and form/line reference:
- Wages (W-2), self-employment (Sch C), business distributions (K-1), rental (Sch E), interest/dividends (Sch B), capital gains (Sch D), retirement distributions, other
3. Tax Liability Analysis
- Federal and state obligations separately
- Effective vs. marginal rates
- Significant credits (child tax, earned income, etc.)
- Withholding and estimated payment patterns
- AMT exposure if applicable
4. Deductions and Adjustments
Flag support-relevance for each deduction:
- Retirement contributions — reduces cash but builds assets
- Health insurance (self-employed) — mandatory expense
- Business expenses — review for personal benefit
- Mortgage interest — lifestyle indicator
- Charitable contributions — discretionary capacity
- Depreciation — not actual cash outflow; courts often add back
5. Business Income Reconciliation
If self-employed or business owner, reconcile reported taxable income vs. actual economic benefit:
- Add back: depreciation, amortization, one-time write-offs, personal expenses through business
- Identify owner perks: vehicle, travel, meals, insurance, entity-funded retirement
- Compare retained earnings + distributions vs. salary
- Determine cash flow available vs. tax-reported income
6. Multi-Year Trend Analysis
- Income trajectory (growth, decline, volatility)
- Filing status changes and tax impact
- Income composition shifts (e.g., W-2 to 1099)
- Marital standard of living indicators from expenditure patterns
7. Observations and Flags
- Income/lifestyle inconsistencies
- Unusual or suddenly changed deduction patterns
- Underreported income indicators
- Hidden income through entity structures
- Need for forensic accounting or expert testimony
- Documentation gaps
Pitfalls and Checks
- Tax income ≠ support income — Depreciation, accelerated deductions, and pre-tax retirement may be added back for support calculations. Flag explicitly.
- Source attribution — Cite tax year, form, and line for every figure (e.g., "2024 Form 1040, Line 9: $185,000").
- Filing status transitions — Quantify tax liability difference from MFJ to MFS/Single/HoH; directly affects disposable income post-separation.
- Imputed income — If voluntarily underemployed or income appears suppressed, note basis but do not calculate; flag for attorney review.
- Limitations — State unavailable documents and how gaps affect analysis. Recommend specific documents that would strengthen the summary.
- Neutral tone — Present findings objectively. Advocacy framing is counsel's role.
