Divorce, Taxes and Children

The combination of taxes and divorce can add another layer of complexity to an already complicated situation. Divorce affects taxes in different ways.  This is especially true for divorced couples with children. Read how divorce affects taxes; especially if you have children.

Child Support

Arguably, alimony and child support are both forms of income, but the IRS tends to treat them very differently. Generally speaking, alimony is taxable for the recipient and tax-deductible for the person paying it. That’s not true of child support. In fact, the IRS does not require that child support be reported as income, so the parent receiving child support will not have to declare it as taxable income. Meanwhile, the person paying child support cannot use these payments as a tax deduction. However, if alimony is scheduled to end within six months of a child’s 18th or 21st birthday, then the IRS may view it as child support. read more