Child Support or Alimony?

[Harvey Lucas]

Seems I am inking up this board today. Seem to have lotsa not so clear issues this year

He and She seperated in Sept of 07, pursuant to a separation agreement. Divorce was final in July of 08.

Court papers say he is pay her $1400 per month in "undiferentiated support", which includes child support of $800 for one minor child.

For 2008, He says that his attorney says that he can deduct the $1400 as alimony, and she has to count it as income.

I am unfamiliar with the term "undiferentiated support"?

He says that the issue was hotly debated and argued about and that in conscession for other issues this is what was agreed to.

Does the full $1400 qualify as deductible alimpny by him and includable income to her?

I will prepare the tax returns for both parties. I want to make sure I get it right.

Harvey Lucas

[dustoffgirl]

hmm no

any part that is child support is not alimony and cannot be claimed.

[Burke]

Where did you get the figure of $800 child support? Was that even mentioned in the documents? Are the payments to be in perpetuity? Do they drop or end at the child's age 18 or so forth? Or the spouse's remarriage? Death? If any payments reduce or stop on such contingencies, they can be allocated accordingly.

[luke]

MOST lawyers do NOT know the IRS definition of Alimony so you CANNOT go by what they say! Wait till next year when FORM 8332 is required and LAWYER says its OK to claim child anyway because court order says so.....

I agree the $800 could NOT be considered alimony (and the rest may or may NOT be)

[MRTAX4EA]

Prep both returns ... conflict?

Isn't it a conflict of interest to prepare the returns of both parties in a divorce?

[AJsTax]

Conflict of interest?

yes, it is considered a conflict of interest per Cir. 230. but is allowed with proper disclosure to both parties and they agreeing to it, preferably..MUCH preferably in writing. Many find it very comforting to have the same preparer knowing that the preparer will treat both fairly. Sometimes the conflicts involved just dont allow that.

[Jesse]

http://www.thetaxbook.com/forums/showthread.php?t=1679&highlight=family+support+alimony

Had similar issue a couple years ago. There is a couple TC memo/links in this thread.

[taxea]

If the 800. is specifically stated in the arrangement as a portion of the 1400. then that is the child support and the client can only claim the difference as alimony if the agreement states that it ceases with the death of the ex. And she has to claim it as income.taxea