Taxes After Divorce
Question:
Are child support and alimony tax deductible?
Answer:
If you are receiving alimony:
- If for any reason you fail to pay the total amount due when both alimony and child support are required, any amount paid is applied to the required child support, with the remaining balance (if any) applied as tax deductible alimony.Payments are taxable as income and must be reported.
- As no taxes are withheld, your accountant may suggest that you have additional withholdings taken out of your paycheck, or that you consider other estimated tax options.
If you are paying alimony:
- All payments made as a result of a separation agreement or divorce decree are deductible in most cases.
- Additional monies paid outside of your divorce decree or agreement (example: situational requests for additional assistance; car repair, home maintenance, etc) are not deductible.
Child support is not deductible. Note: If for any reason you fail to pay the total amount due when both alimony and child support are required, any amount paid is applied to the required child support, with the remaining balance (if any) applied as tax deductible alimony.
For more information, go to www.irs.gov.