Alimony/child support Flashcards
Is child support received included in GI? Is child support paid deductible from GI?
No
When is a payment considered to be alimony? (6)
- paid in cash
- paid because of a divorce/separation decree
- not designated as “other” than alimony (child support)
- terminates at death of receipent
- is not paid to a member of the household
- not paid to a spouse you file MFJ
When can a taxpayer deduct alimony payments that are made?
Prior to the end of 2018 - deductible
After the end of 2018 - not deductible
When is alimony received included in Gross Income?
- Prior to end of 2018 - include in Gross Income
- After the end of 2018 - do not include in Gross income
- a divorce decree is revised and it allows amounts to be excluded from income
Is a payment considered Alimony or Child Support if the payer owed both and only sent a partial payment?
payment is considered child support until it is paid in full and then excess payments are considered alimony
If a payment has a special condition related to a child is it considered alimony or child support? (ie: payment must be made until child reaches the age of 18)
Child support
Pre 2019 Divorce: Your divorce decree calls for you to pay your former spouse $200 a month as child support and $150 a month as alimony. You paid $3600 that year. How much of your Alimony is deductible?
Alimony required: 15012=1800
Child support required: 20012=2400
Deductible Alimony = 3600-2400=1200
Property transfers to a spouse/former spouse are not included in GI if they are “incident” to the divorce. What are the requirements to be considered “incident” to the divorce?
- transfer of property within one year of the marriage end or transfer related to the marriage ending
- Exclusion does not apply if spouse is a non-resident alien
Are property transfers to a spouse/former spouse “incident” to a divorce included in Gross Income for the spouse?
No- the property is treated as a transfer by gift and is not included in GI
