Child support payments and alimony payments are treated differently for tax purposes.
Child Support Payments:
- Child support payments are not considered taxable income for the recipient. This means that if you receive child support, you do not include these payments in your gross income. Conversely, if you are the payer, you cannot deduct these payments from your income. This is consistent across multiple sources, including IRS publications and regulations.
Alimony Payments:
- The tax treatment of alimony payments depends on the date of the divorce or separation instrument. For instruments executed after December 31, 2018, alimony payments are neither deductible by the payer nor includible in the income of the recipient. This change was brought about by the Tax Cuts and Jobs Act.
- For divorce or separation instruments executed on or before December 31, 2018, and not modified to reflect the new law, alimony payments are deductible by the payer and includible in the income of the recipient. This means that under these older instruments, the recipient must include alimony payments in their gross income, and the payer can deduct these payments from their income.
In summary:
- Child support payments are not taxable income for the recipient and are not deductible by the payer.
- Alimony payments are taxable income for the recipient and deductible by the payer only if the divorce or separation instrument was executed on or before December 31, 2018, and not modified to reflect the new law. For instruments executed after this date, alimony payments are neither taxable to the recipient nor deductible by the payer.
Sources:
TD 7973
Rev. Rul. 57-368
Publication 17 (2023)
Publication 504 (2023)
§ 1.71-1T. Alimony and separate maintenance payments (temporary).
Tax Court: Family Support Payments Not Deductible as Alimony
