How do I account for these payments on my Married Filing Separately Tax return?

That sounds like a gift, the value of which is excludible from your gross income. Also, no gain or loss is recognized on transfers of property from an individual to a spouse incident to a divorce. The transformer basis in the property is carried over to the transference.

Child support is not deductible, but may allow your husband to claim the children as dependents if he accounts for more than 50% of their support. Spousal support must be pursuant to a court order in order for your husband to deduct it, so he is treating it appropriately. The real issue here is why the return is being filed as married and separate? In most circumstances married and separate filing status results in a greater tax liability. If at all possible, the two of you might want to explore filing a married and joint return or at least have an accountant review your records to determine if joint filing would not reduce your tax liability.

If the payments are child support, then it is not income to you and not a deductible expense to your husband. If any part of the payment is alimony or maintenance to you, then it is income that you must list on your tax return and your husband can claim a deduction on his tax return for it. Your divorce papers should clearly state which type of payments these payments are. If they do not, then you two need to work this out. Your husband does not get to decide by himself how to treat the payments.

If the court ordered him to pay spousal support he would be able to deduct payments made for spousal support under a court order and you would have to pay income tax on such payments . Any amounts paid as child support whether ordered nor not would NOT be deductible to him. My guess is that he is not separating them as he intends to try and take any amounts he sends you as a deduction on his income tax return. You should ask your divorce lawyer about this (if you have one, if you don't you need to retain one).