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Are alimony payments taxable?

On Behalf of | Mar 18, 2017 | Divorce |

When tax season rolls around, some people are stressed out and have a wide variety of questions. If you recently split up with your spouse, or are thinking about filing for a divorce, it is essential to familiarize yourself with all of your responsibilities, including those which may involve taxes. In Stamford, and cities around the state of Connecticut, understanding where the IRS stands on taxes is vital for those who receive alimony as well as those who make alimony payments.

According to the Internal Revenue Service, those who receive alimony are required to pay taxes on alimony payments. At the same time, those who are obligated to pay alimony can deduct payments made to their former spouse. Having said that, there are a number of conditions that must be satisfied in order for payments to be considered alimony by the IRS. For example, payments cannot constitute property settlements or child support, must be made via an acceptable method of payment and cannot have been made to a person living at the same residence, to name a few.

Whether you are responsible for paying alimony to your former spouse or are currently receiving spousal support, it is essential to work through tax matters appropriately. By successfully handling these and other issues related to divorce, you may be able to avoid complications, which can be particularly helpful for those who have recently split up with their spouse.

You should understand that this post does not serve as a substitute for legal recommendations.