Alimony and your taxes: Deducting alimony on your return

When you pay alimony, you may have questions about how it will affect your taxes. Will you be taxed on the income you're losing? Will this affect your overall income level? Before you ever pay alimony in a divorce, understanding how you'll be affected in the long term is key to knowing which is a good settlement and which is one that could put you at financial risk.

The good news is, if you're paying alimony, that you can actually write off that money on your taxes. By being able to deduct it, you can eliminate paying taxes on those earnings. Instead, your ex-spouse, the person receiving the alimony, will then be required to pay taxes on that income.

You can deduct alimony payments that you make if you meet several requirements. First, you must not have filed a joint return with your spouse. Second, if you pay in cash and the divorce or separation agreement doesn't say the payment isn't alimony, you can take it off your taxes. If you are legally separated under a decree of divorce and you aren't living in the same house as your spouse when the payments are made and the payment isn't considered to be child support, then you can meet the requirements for deducting this money from your taxes.

Child support, on the other hand, is not deductible. If you pay combined child support and alimony, you still can only claim back the money spent on alimony on your taxes. Both property settlements and lump sum settlements do not count as alimony.

Source: FindLaw, "Alimony and Taxes," accessed May 26, 2016

No Comments

Leave a comment
Comment Information
  • The Law Office of Daniel E. Forrest represents individuals in Fort Lauderdale in high-asset divorce matters. Daniel Forrest is board-certified family lawyer and mediator serving the South Florida area.
  • The Florida Bar - Board Certified | Marital & Family Law
  • AV(R) Preeminent Martindale-Hubbell(R) Lawyer Ratings
  • Rated By Super Lawyers | Rising Stars Daniel Forrest | SuperLawyers.com
  • Avvo Rating 10.0 Superb | Top Attorney Family
EMAIL US FOR A RESPONSE

Learn More About Your Legal Options

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office
450 East Las Olas Boulevard
Suite 1090
Fort Lauderdale, FL 33301

Toll Free: 800-642-8160
Phone: 954-800-5000
Fax: 954-252-4095
Map & Directions

Phone