On behalf of North Tampa Legal Group posted in alimony on Thursday, October 19, 2017.
Some find it incredibly helpful to have all their ducks in a row when it comes to tax time. A person receiving alimony and/or child support may be wondering how these payments affect their income at the end of the year. A recent news article shares some tips from the experts that Florida families may find enlightening.
Alimony payments are treated differently than child support payments. A person may be wondering how the different payments will affect them when it comes to tax time. If a person is receiving the payments, then the alimony is counted as taxable income, while the child support is not. The person sending the alimony payments can deduct the amount from their gross income.
Child support payments are neither deductible or counted as income when received. The particular circumstances of the individual will dictate how they choose to settle the support payments with their ex. There are also a number of other factors to consider, such as the age of the children, the continued payment of insurance benefits, the length of the marriage, college tuition and whether or not the payment is renegotiable.
Alimony and other payments are one part of figuring out a divorce, alongside property division and custody. The long-term impact of the payments on an individual’s lifestyle should be carefully considered before coming to any final agreement. Many individuals in Florida will choose to enlist the services of a knowledgeable family law attorney for guidance on the details of dissolving a marriage.
Source: montereyherald.com, “Barry Dolowich, Tax Tips: Alimony vs. child support“, Barry Dolowich, Accessed on Oct. 18, 2017