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I am being told that I cannot deduct the full debt (alimony) that my former spouse owes me (child support) from my spousal support obligation because one off sets the other. Alimony is $1500.00 for me and child support is $1014.00 for her, for a net result of alimony paid of $486 and $0 in child support to me. Is this a correct interpretation for tax deduction purposes? Thank you for your input.
3 ANSWERS
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Alimony received is taxable income. Alimony paid is deductible. Child support is not taxable income and is not deductible. However, it counts as support in determining who gets to claim the child(ren) as dependents. Therefore, if your arrangement with your ex is that she pays you $486 and the rest offsets each other, then you must report $1500 of income and can consider $1014 as part of your support paid.
Answered on Apr 15th, 2013 at 12:07 AM
Yes, that is correct. You can NOT deduct alimony against child support.
Answered on Apr 14th, 2013 at 8:07 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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No. Child support is not deductible and, for tax purposes, does not offset alimony. Alimony in full is deductible to the pay or and taxable income to the recipient. The fact that you may only exchange the net dollars is not relevant.
Answered on Apr 14th, 2013 at 8:04 PM