Rules For Child Support #Īs child support is neither tax-deductible nor taxable income, there are no reporting requirements for making or receiving payments. You also will need to include your former spouse’s Social Security number or taxpayer identification number. If you’re receiving alimony, and it’s considered taxable income, you’d also report that on Form 1040, Schedule 1. Otherwise, the IRS may disallow the deduction. You’ll need to enter your former spouse’s Social Security number or individual taxpayer identification number on the form. If you’re eligible to deduct alimony payments you made, you can do that on your Form 1040, using Schedule 1. Payments aren’t treated as child support or a property settlement. There’s no liability to continue the payments if the receiving spouse dies. Spouses must not live in the same household when payments are made. The divorce or separation agreement doesn’t categorize the payments as not being alimony. Payments must be owed under a divorce or separation agreement. Payments must be made in cash or by check or money order. To qualify as alimony, ex-spouses must meet these criteria: The IRS has several requirements that must be met for spousal support payments to be considered alimony and therefore, deductible for divorce agreements finalized before December 31, 2018. That’s important, because in most cases, the non-custodial parent is expected to pay child support. In the case of child support, IRS rules define who the custodial parent is and who can claim the child as a dependent. In case of alimony, those rules are about how to deduct or report alimony income. The IRS has several requirements when it comes for both alimony and child support payments. IRS Rules Regarding Alimony and Child Support # Child support payment is also not deductible for the parent who provides it. Again, this only applies if your divorce agreement was finalized before December 31, 2018.īecause child support is intended to benefit the children, it’s not considered taxable income for the person who receives it. On the other hand, if you’re receiving alimony payments, you must claim them as taxable income on your return. That means you can deduct the alimony you’ve paid from your taxable income for the year, yielding a tax break. If your divorce agreement was finalized prior to December 31, 2018, and you make alimony payments to your ex-spouse, those amounts are tax-deductible. How you treat alimony for tax purposes depends on whether you pay it or receive it and when your divorce was finalized. Tax Treatment of Alimony and Child Support # It is not granted automatically-the spouse needing the alimony has to ask for it.Ĭhild support payments are made towards meeting basic expenses of your child that may include food, shelter, clothing, medical expenses and other general costs. Child support is paid to meet the basics needs of the child, such as food, clothing, medical care, housing, and other necessities.Īlimony is generally intended to help the spouse receiving it maintain a similar lifestyle to the one they were accustomed to during the marriage. Alimony is paid for the benefit of a spouse. The key difference between alimony and child support is the intended use of each payment.
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