Child Support Page 12-12?

[SueBaby]

Am I corrected to read on page 12-12 if NO alimony received they could use child support in it's place? Have a client recieved a heifty child support but no alimony? Thanks---haven't used child support on return ever.

[Burke]

Child support is not taxable, nor reported on the return -- ever. What does the divorce decree say about payments? Does it specify that it is child support? Sounds like you may be talking about a lump sum payment? Pls clarify.

[Gary2]

I'm not sure who "they" is, nor what they might be using the child support for. I'm also not sure where on page 12-12 you're reading.

The only thing to come to mind is that if one spouse is ordered to pay $5K/year in child support, and $5K/year in alimony, but only pays $8000 in the year, then it's not split as $4K child support and $4K alimony. It's treated as $5K child support and $3K alimony.

[taxea]

if the payments end when the child turns 18 it is child support, if they end when receiving spouse remarries, it is alimony...you need to look at the separation agreement and keep a copy of it in your client file.

[David1980]

Am I corrected to read on page 12-12 if NO alimony received they could use child support in it's place? Have a client recieved a heifty child support but no alimony? Thanks---haven't used child support on return ever.

Sounds like you want to treat the child support as alimony and deduct it, because there is no alimony specified in the divorce/separation agreement?

What actually happens is the opposite, if alimony is not specifically stated the whole amount is treated as non-deductible child support.

[SueBaby]

Child support is not taxable, nor reported on the return -- ever. What does the divorce decree say about payments? Does it specify that it is child support? Sounds like you may be talking about a lump sum payment? Pls clarify.

Thanks to all because I never use child support no where on the return----- only alimony. But I just wanted to have a second look at something I had a question about to stop and ponder on with other heads.
Thanks as always have a great day and tax season!

[Gary2]

if the payments end when the child turns 18 it is child support, if they end when receiving spouse remarries, it is alimony...you need to look at the separation agreement and keep a copy of it in your client file.

This may be a common scenario in some or many states, but it's not complete. In MA, for example, where parents are responsible for their children's college education, child support can be required beyond age 18. A more general rule is that if the payments have some contingency related to the children (whether based on age, enrollment in school, or whatever), then it's not alimony. We generally need not be concerned whether it technically qualifies as child support.

Conversely, judges here have a lot of leeway concerning alimony. As far as I know, there's no legal requirement that alimony end if the spouse remarries (though it would be either an extremely unusual situation or a poor lawyer to allow that termination provision to get through). However, the mere fact that a payment terminates if the recipient spouse remarries isn't enough, by itself, to conclude that a payment is alimony. It's safer to refer to all the requirements; Pub. 504 does a very good job of explaining them.

[Gary2]

Sounds like you want to treat the child support as alimony and deduct it, because there is no alimony specified in the divorce/separation agreement?

What actually happens is the opposite, if alimony is not specifically stated the whole amount is treated as non-deductible child support.

I disagree. Pub. 504 makes it clear that it's the other way around, at least for agreements made after 1984. There are several requirements, one of which is "The instrument does not designate the payment as not alimony." The double negative is unfortunate, but it is what it is.

In other words, if the agreement says "this isn't alimony", then it isn't; you don't need to look further. If the agreement says it is alimony, then you still need to check the other requirements - if it doesn't meet them all, then it's not alimony, no matter how many times the agreement says it is. And if the agreement is silent, then it's possible it might be alimony, even though not labeled alimony, again based on the specific requirements.