Filing Taxes with Alimony & Child Support Payments

Depending on whether you’re on the paying or receiving end, alimony could have a significant impact on how you file your taxes. How do you handle these payments for federal tax purposes?




According to the IRS, divorcees who pay child support have a more simplified situation. Court-ordered child support payments aren’t considered deductive by the paying ex-spouse, and aren’t taxable income for the receiving parent. While filing your taxes, child support won’t need to be on your mind.


However, alimony is taxable income for the receiving ex-spouse, and deductible by the payer. There is a catch – federal tax issues around alimony are a bit more complex than meets the eye. Here’s what you need to know if you’re filing taxes for the year you made or received alimony.


1. The rules apply to alimony whether you were legally separated or divorced during the calendar year for which you are filing.


2. These rules also apply whether the alimony was part of the divorce agreement, a separate maintenance agreement, or a divorce decree ordered after trial.


3. The alimony payments must be cash, check, or money order to the receiver.


4. You can no longer file a joint tax return in order for the IRS to define your payments as alimony.


Assuming that your payments are legally considered to be alimony by the IRS, both ex-spouses will be required by law to include them on their tax returns using a 1040 form.


As a courtesy to you, we are providing this information, but please address all of your tax related questions to a CPA, or other tax advisor. If you need assistance in family law matter, contact your lawyers at Schulz Stephenson Law of Carteret County to review the facts surrounding your separation or divorce.


Schulz Stephenson Law represents clients regarding Family Law, Domestic, and Divorce matters in Carteret County, NC including Beaufort, Morehead City, Atlantic Beach, Cape Carteret, and Emerald Isle as well as New Bern and other areas in Craven County, Pamlico County and surrounding areas. Contact us today for a consultation so we can discuss the next steps in your family law matter.

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