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In the case of alimony, you may also need to keep records of those payments fortax deductions.
Learn more about the the tax implications of receiving or making payments.
What Is Alimony?
Alimony is the money one spouse pays the other in a divorce.
Its essentially a form of spousal support.
If there was a prenuptial agreement, it should clearly define these payments so the judge doesnt have to.
Tax Treatment of Alimony
You may be wondering if spousal support is tax deductible.
What Is Child Support?
Child support is essentially money paid to support the child.
It can be used for things like the childseducation, health or general well-being.
Typically, the ex-spouse who acts as the primary caretaker or provider receives child support from the other party.
Even in joint custody situations, child support may still be required.
Payments typically continue until the child is 18 years old.
Tax Treatment of Child Support
So, ischild support taxdeductible?
In short, no.
Child support payments are not taxable or deductible for either party.
Whether youve received or paid child support, dont include those payments on your tax return.
Be aware that some states have their own regulations.
The good news is you dont have to report child support on your federal tax return.
As for alimony, it depends on when the divorce was finalized.
The Bottom Line
Understanding your tax liability is important.
you’ve got the option to learn more about GOBankingRates processes and standards in oureditorial policy.
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