A Change in Marital Status Affects Tax Filing

Update Tax Withholding 

Tax Treatment of Alimony and Separate Maintenance 

Amounts paid to a spouse or a former spouse under a divorce decree, a separate maintenance decree or a written separation agreement may be alimony or separate maintenance for federal tax purposes. 

Certain alimony or separate maintenance payments are deductible by the payer spouse, and the recipient spouse must include it in income. 

However, not all payments are considered alimony or separate maintenance. It doesn't include: 

• Child support 

• Noncash property settlements - whether in a lump-sum or installments 

• Payments that are your spouse's part of community property income 

• Payments to keep up the payer's property 

• Use of the payer's property 

• Voluntary payments
  
  

Rules Related to Dependent Children and Support

Generally, the parent with custody of a child can claim them on their tax return. If parents split custody fifty-fifty and aren't filing a joint return, they'll have to decide who claims the child. If the parents can't agree, they should refer to the tie-breaker rules in Publication 504, Divorced or Separated Individuals. 

Child support payments are never deductible by the payer and aren't taxable to the payee. Report Property Transfers, If Needed.

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This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007