My friend, who was retired from the military in 2000, was divorced 4 years ago. His ex was awarded half of his military pension. When he gets his 1099-R, it shows he received 100% of the distribution, and he pays the taxes as if he received that income. She actually receives half of it (thay have an amicable agreement and he lets her withdraw her half form a joint account , kept open solely for that purpose. She withdraws half the total amount before taxes. Shouldn't she claim her half as income and pay taxes on it, and shouldn't he be able to deduct the amount he actually does not receive? Although it isn't actually alimony, we have been told by several sources that you put it in the alimony line on the 1040 as a deduction. It doesn't seem he should pay taxes on something he does not receive. Thanks in advance!