There are many aspects you must be aware of when it comes to divorce. Did you know your taxes will be affected, too? Here at Arturo R. Alfonso, P.A., our team of professionals are here to make sure you know how alimony and child support affects your taxes. We specialize in Miami Dade child support and want to make sure you have all the information you need.
Reporting Alimony
After a divorce, it’s common to forget that alimony and child support will affect your taxes. Here’s how.
Alimony
When you pay alimony, the payments are deducted from your taxable income, lowering your tax liability. But you still have to meet certain requirements:
- The payment must be by cash, check, or money order.
- You and your spouse can’t live in the same home.
- You can’t count payments made after your ex dies or remarries since you’re not obligated to pay those.
- The payment cannot be for child support.
If you receive alimony, you must report the payments as income on your taxes. And you have to give your ex-spouse your SSN so that he or she can claim the payments on their taxes. Your ex can probably get your SSN from a prior tax return, but if he or she doesn’t have your SSN and can’t get it from you, the IRS can fine you $50.
When you do your taxes with 1040.com, report alimony received on our 1040 – Income Section screen, line 11. Report alimony paid on our 1040 – Adjustments Section screen, line 31.
Tax Law Update: Alimony will be treated differently for future tax years. For divorces finalized after December 31, 2018, there will be no deduction for paying alimony payments, and alimony income will be non-taxable.
Reporting Miami Dade Child Support
Child support payments don’t affect your taxes as much as alimony does:
- If you pay child support, you can’t deduct the payments from your taxable income. You just report your income normally and don’t decrease it by the number of your support payments.
- If you receive child support, you don’t include the amount in your taxable income. You also can’t count child support as earned income to qualify you for the Earned Income Credit.
In either case, you do not report child support on your taxes.
If you pay child support, you may be able to claim the child as a dependent. Even though you get no tax break for the support payments, the fact that you are making payments means you at least partly support the child, so you may be able to claim the child as a dependent.
Call Us For Divorce Lawyers in Miami Free Consultation
Are you aware of all the information when it comes to Miami Dade child support? Arturo R. Alfonso, P.A. is made of experienced divorce lawyers Miami. When it comes to child support in Florida, our family attorney has you covered. Dealing with a child support lawyer should not be so stressful, and we are here to help. Call or visit our law firms near me today for more information. We are a family attorney that is here for you during this tough time. Be sure to check out our Miami family law attorney free consultation.