Search Site
What Are The Tax Implications Of Alimony And Child Support?

What Are The Tax Implications Of Alimony And Child Support?

Interviewer: In terms of the tax consequences for both alimony and child support, how do they affect the income taxes of both parties?

Tanya: Alimony is tax deductible to the paying spouse and it is taxable to the receiving spouse. That is allowed according to the IRS code. If, however, you have circumstances where you do not want to have the tax implications, you can make it a non-taxable event.

I am going to give you an example. Say you have a husband whose income consists of a base salary and commission. If he had to come up with the full amount of alimony every month, he may have difficulty. Even though at the end of the day it is tax deductible to him, he is still having problems because his commissions can vary.

For example, if the award is $8,000 a month, at the end of the tax year, it works for him because he can deduct the yearly total. If he gave it to the former spouse non-taxed, it would only be $6000 a month. So he will not get the tax benefit at the end.

However, it is easier for him to come up with the money without the taxes. There are circumstances like that, and there are other circumstances why people take it without the tax or give it without the tax.

Most of the time, alimony is taxable to the recipient as income and tax deductible by the paying spouse. Child support has no tax implications. There is no tax benefit or detriment for child support.

Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form

Our Offices
  • Whippany Office- New Jersey (Primary)
    575 Route 10 East
    Suite 1
    Whippany, New Jersey 07981
    Phone: 973-428-0800
    Fax: 973-428-0830
  • New York Office
    420 Lexington Ave.
    New York, New York 10170
    Phone: 646-213-9053

May, 2015

Tanya at Speak Up and Step Out Weekly Radio Show

Tanya Helfand, Founder, Helfand & Associates Discussed divorce. Play

December, 2014

Tanya at blogtalk radio

Tanya Helfand, Founder, Helfand & Associates Discussed the impact of divorce on business. Play

view All

Press Releases