After a divorce, it’s common to forget that alimony and child support important parts of filing your tax return.
For divorces finalized in 2018 or prior years:
For divorces finalized in 2019 or later years:
Regardless of the year your divorce was finalized, you must give your ex-spouse your SSN, so that he or she can report 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.
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 amount of your support payments.
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.
Finances can get complicated after a divorce, but at Tax Office & Associates™, keeping things simple is our top priority. Contact us to get started.