23 Nov Do I have to Pay Income Tax on Spousal Support Payments?
You and your spouse have settled your divorce. The legal battle is over and your have been ordered to pay spousal support to your ex. With the end of 2015 upon us, you may be questioning: do I have to pay income tax on the spousal support payments that I have made?
Spousal support, also known as alimony, is money given to a former (or soon to be former) spouse for the purpose of additional income support. In the state of New Jersey, paying spousal support does allow the payer a reduction of taxable income while the support increases the taxable income on the part of the payee.
There are several factors that can influence if the payer can deduct the spousal support payments. These factors include:
- Payments must be made according to the divorce decree
- If the decree states that payments do not qualify for tax purposes, then payer does not get credit
- Spouses cannot live together when payments are made
- Spouses cannot file joint taxes when payments are made
- Spousal support cannot be the same as child support
- Spousal support obligation cannot extend past payee’s death
- Payments must be reported to federal government as taxable income on payee’s behalf
For clarification, spousal support and child support are two different types of support, and child support cannot be deducted as taxable income.
If you would like more information about paying income tax on your spousal support payments, please contact the Law Offices of Jeffrey M. Bloom using the form at the top of the page or call (855) 208-3650 today to schedule a consultation. Mr. Bloom serves clients in West New York, and throughout Bergen County and Hudson County, New Jersey.