Most divorcing couples understand the basic tax implications of maintenance and child support, being that maintenance is deductible by the payor and must be included in the income of the receiving spouse when filing income tax returns. Child support is neither deductible by the payor nor treated as income by the recipient parent. However, paying spouses must be aware that if they are behind on their child support payments, they will not be allowed to take a deduction for maintenance, as the IRS will consider any maintenance paid to be paying down the child support arrearage for tax purposes only.
Other forms of payments from divorcing couples or ex-spouses may also be deducted as spousal support even if not specifically categorized as such. These payments can include amounts paid by one spouse for the separate debts of the other, or half the mortgage or repairs done to a house that is jointly owned but solely occupied by the support recipient. The rules on what amounts qualify as spousal support in addition to court-ordered maintenance will depend on the specifics of the case and should be approved by a qualified divorce attorney to avoid IRS troubles. It is also essential that ex-spouses claiming a deduction and reporting support as income to coordinate with each other, as individuals whose numbers do not match up are both issuing an invitation to the IRS to audit.
Windy City Law Group– Skokie family attorneys
