Gross Income - Section - Payments Pursuant to a Divorce
3 important questions on Gross Income - Section - Payments Pursuant to a Divorce
How is child support treated in the tax code?
It is tax-neutral: not deductible by the spouse making payment and not includable as taxable income by the spouse receiving payment.
What is the tax treatment of partial payments of both alimony and child support?
If the agreement specifies that payments are to be made both for alimony and child support, but the payments fall short, the payments will be allocated first to child support until the entire child support obligation is met, and then to alimony.
What is the tax treatment if a divorce settlement provides for a lump-sum payment or property settlement?
If a divorce settlement provides for a lump-sum payment or property settlement by a spouse, that spouse gets no deduction for payments made, and the payments are not includable in the gross income of the spouse receiving the payment.
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