| There are two things guaranteed: death and taxes. | | | | the divorce, there would be a portion of legal fees |
| If you are divorced or separated, you have additional | | | | related to alimony, so is any of this deductible and |
| deductions or you have tax consequences. | | | | what documentation is needed to support the |
| Child Support is not Tax Deductible | | | | deduction? This is a good question to ask an |
| Many newly divorced or separated people don't know | | | | attorney or certified tax preparer. |
| that child support is NOT tax deductible. The Internal | | | | Alimony is deductible |
| Revenue Service's thinking behind this is that you | | | | Men, since you are usually in the position to pay |
| would have the cost associated with child support any | | | | alimony, you get a tax break. But, of course the |
| way and supporting your family wouldn't normally be | | | | IRS has rules on what is considered alimony. For |
| deductible; except, any allowable deductions that would | | | | example, if you pay the mortgage on the family home |
| be under any other normal IRS code. What about a | | | | after you leave, this is not tax deductible. You will |
| guy who is unfairly forced by the courts to pay child | | | | however, be entitled to share in the mortgage interest |
| support for a child that is not his responsibility? Yes, | | | | and property tax deduction. But, if you don't own a |
| this happens. | | | | home and say you pay the rent directly to the landlord, |
| After the divorce, DNA has proven that the kids are | | | | you are out of luck on getting credit for a tax |
| not biologically his. This happened in a case in Florida | | | | deduction. So, if you lived in an apartment, pay you |
| in 2007, with Richard Parker. Once he discovered | | | | ex directly, during the separation with a check made |
| that the children were not his, he petitioned the court to | | | | out to her. |
| stop paying child support. The case went to the | | | | Generally, alimony is tax deductible to the person who |
| state supreme court, and the court ruled 7-0 against | | | | pays it and it is taxable to the person who receives |
| Parker, forcing him to continue to pay. If you care to | | | | it. This could be some savings for you, the payer. |
| read the case, Richard Edward Parker, Petitioner, vs. | | | | However, just because a payment is called "alimony" it |
| Margaret J. Parker (2007) Florida Supreme Court, | | | | still has to pass the IRS rules as defined in the code, |
| (February 01, 2007) . | | | | defining "alimony" and "separation". Rule one is that |
| You may be able to claim your child or children as an | | | | the payment must be made in cash or check with |
| exemption even if you are the noncustodial parent. If | | | | supporting documentation. Must be received "under a |
| you haven't settled your divorce yet, have tax | | | | divorce or separation instrument". Something in |
| exemptions spelled out in. If you are working and the | | | | writing like a court order, separation agreement or |
| soon-to-be-ex is not, make sure that you get it in | | | | settlement. |
| writing that you get the child exemption until the ex | | | | Other Deductions |
| gets a job. Also, make sure that if you have multiple | | | | Make sure that you work out in your settlement who |
| kids, that you get some of the exemptions or if you | | | | will get deductions on the mortgage interest and taxes |
| have one kid, every other year. Get the exemption. | | | | and who will pay taxes on miscellaneous interest, |
| But, it doesn't stop there; you must have the custodial | | | | capital gains, gain on house sale (yeah, right!) and the |
| parent sign the IRS form 8332, Release of Claim to | | | | like. Don't get stuck with all the taxable items. Make |
| Child Exemption and file it with your tax return. | | | | sure you get some tax breaks. Especially if you are |
| Divorce Legal Fees are not Deductible, with an | | | | covering the majority of the costs for two households |
| exception | | | | during the separation and during the divorce and even |
| You just paid, probably $15,000 to $30,000 on a | | | | after the divorce. |
| divorce and this huge amount of money is not tax | | | | Check out IRS Publication 504 |
| deductible. Divorce is considered a personal matter | | | | There are many tax issues to consider during or after |
| by the IRS. It's crazy that you can't deduct these | | | | the divorce process. Go to to get a copy of the |
| expenses, but you can deduct the legal fees for a | | | | IRS Publication 504, or go to the IRS site. Also, find a |
| Trust. There is, however, an exception for legal | | | | certified tax preparer with specific tax deduction |
| divorce fees. If you hired an attorney to recover or | | | | questions. |
| enforce an IRS deductible expense, then you can | | | | NOTICE: we are not attorneys or certified tax |
| deduct the fees. So, since alimony is deductible for | | | | preparers and we are not giving advice. This |
| one and taxable for the other, if you are defending | | | | information within is general information and the opinion |
| against alimony or trying to enforce alimony, the fees | | | | of the writer. Please consult with an attorney or a |
| paid to an attorney would be deductible in this case. | | | | certified tax preparer with your specific situation. |
| Now this brings up a gray area. During the course of | | | | |