Which support payments are taxable?

It’s tax time! If you have been divorced within the past year, you likely are wondering if the spousal support and child support payments you receive are considered taxable income.

Spousal support is considered to be earned income by the IRS and therefore taxable. Child support, on the other hand, is not considered to be part of your income and is not taxable under the law.

Often, a smart attorney will look at the individual makeup of your family and will include in your divorce judgment that once your children reach the age where they are no longer getting child support (up to age 19 ½ or until graduation from high school), the amount of child support will be switched over to spousal support. This money will then become taxable, but it helps keep the woman’s income from dropping precipitously as her children reach the child support threshold. One of the reasons for this is because more and more children are still living at home and being supported by the custodial parent after they graduate from high school.

Your divorce judgment often will contain specific indications on tax issues. Who get the child tax credit and the dependent care credit are determined by a number of factors. Be sure that you check through your judgment to see if there are any specific allowances for your or your ex’s taxes, including mortgage interest, if you own a home.





WOTV 4 women’s legal expert Gail Saukas

For more on Gail and her work visit the DAWN site here


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