Family Law Blog

James D. Madden & Aruna P. Rodrigo, Family Law Attorneys

Are Support Payments Tax Deductible? 05-25-2016

Are Support Payments Tax Deductible?

It is a very common question we receive: “Are support payments tax deductible? How do support payments affect my taxes?” The simplest possible answer we can give is, alimony is tax deductible, but child support is not. Distinguishing and separating the two may be difficult, but our San Bernardino divorce lawyers are here to help you. At Matthew Sheasby, Attorney at Law, we are dedicated to making sure you do not make mistakes when filing your taxes and considering support.

In California, the laws require the recipient of the alimony to report it as income. When they do this, the payor can take a deduction for the amount paid. If you are the payor and you want alimony payments to be deductible, make sure you follow the necessary requirements:

  • Payments are made in cash, check, or money order.
  • The divorce decree does not label the payment as NOT alimony.
  • You and your ex are not considered members of the same household at the time of payment.
  • No liability is present to make payments after your ex’s death.
  • Payments are not considered child support.

There are certain payments of which you must be aware that do not count as alimony. While alimony can be considered payments, such as cash payments to a third party for residence, medical costs, or other expenses, things such as property settlements, retirement benefits, and other voluntary payments are not considered alimony.

Unfortunately, without knowing what is classified as alimony, many people count all payments made to their ex as deductible. This means that these individuals are considering excessive amounts of payments as deductible, and are thus paying less to their taxes. It is very important to make sure you understand alimony payments and how they are connected to matters such as paying your taxes. If you are the person receiving support, you must be aware that this counts as alimony and must be reported on your taxes.

It’s crucial to understand tax implications and how your divorce case can be affected. These are complex matters, and the most effective way to get past them is to hire a skilled attorney to help you. By retaining legal counsel, you can better understand your situation and know what is considered deductible.

At James D. Madden & Aruna P. Rodrigo, Family Law Attorneys, we are led by a Board Certified Family Law Specialist. You can trust that when you hire our firm to help you, we are completely dedicated to your education, your rights, and your well-being. We can walk you through the process and explain how you can file taxes while factoring in alimony payments. If you need help, contact our firm today for a free case evaluation and learn what our skilled lawyers can do for you.

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Categories: Alimony

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