| A common question in my office from parents | | | | taxable to the one receiving it. |
| experiencing divorce concerns how to treat child | | | | It can get messy when both child support and |
| support for income tax purposes. | | | | alimony are involved in your divorce. If you're not |
| Fortunately, this is an easy one to answer. Child | | | | careful, you can wind up with payments you |
| support payments have no income tax effect: | | | | thought were tax deductible alimony being treated |
| They are not deductible by the paying parent, and | | | | as non-deductible child support. Sometimes even |
| they are not taxable to the receiving parent. | | | | divorce lawyers miss this one. |
| In a rarity in the tax code, there are no | | | | Property divisions in a divorce generally have no |
| exceptions. Most tax provisions have exceptions | | | | income tax effect either. Again, though, you have |
| and exceptions to the exceptions, and exceptions | | | | to be careful when you have both alimony |
| to the exceptions to the exceptions. But here's | | | | payments and a significant property division. |
| one place where there is a hard and fast rule: | | | | Be sure to consult with an experienced family law |
| Child support is not deductible and not taxable. | | | | attorney to make sure your agreement meets |
| This is the polar opposite of alimony (also called | | | | the criteria in the tax code. You might also want |
| spousal support or maintenance). As long as it | | | | to check with a tax advisor who is familiar with |
| meets all the requirements in the tax code, | | | | divorce. |
| alimony is deductible by the one paying it, and | | | | |