In California: If you receive alimony payments, you must report it as income on your California return. If you pay alimony to a former spouse/RDP, you’re allowed to deduct it from your income on your California return.
Is alimony still deductible in 2019?
For payments required under divorce or separation instruments that is executed after Dec. 31, 2018, the new law eliminates the deduction for alimony payments. Recipients of affected alimony payments will no longer have to include them in taxable income.
Is there a tax deduction for spousal support?
On the other side of the spectrum, the person making the spousal support payments (“Payor”) treats those payments are 100% tax deductible. The fact that spousal support payments to the Payee are considered taxable income creates an additional consideration; similar to the tax requirements for independent contractors.
Can a child support order be tax deductible?
The practical implications of this is that a “family support” order can be deemed entirely tax deductible (for the party paying) and entirely taxable (for the party receiving the support). Alternatively, the entire “family order” can be non-taxable like child support.
How are spousal support and child support treated in California?
In California, provided both parties agree in writing, parties to a dissolution can opt to have a support order for both family and spousal support entered, this is referred to as “family support.” This combination allows the parties to treat the entire “family order” to be treated as though it were spousal support, or child support.
Can a dissolution of a marriage include spousal support?
In California, provided both parties agree in writing, parties to a dissolution can opt to have a support order for both family and spousal support entered, this is referred to as “family support.” This combination allows the parties to treat the entire “family order” to be treated as though it were spousal support or child support.
