If you’re divorced and get financial help from your ex-spouse, you need to be careful about the type of support you receive because it will make a difference at tax time. Alimony is treated as taxable income, but child support is not, Grissinger said.
“That’s why it’s important to have proper representation on the legal side,” he said. Make sure during the divorce settlement that you agree to have money come to you as child support — or get a large enough alimony payment to cover the tax bill that will come with it, Grissinger said.
On the flip side, people who pay alimony get to deduct that payment on their tax return. However, they can’t deduct child support payments.
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