Is California Spousal Support Or Alimony Tax Deductible
We’re not Divorce attorneys. We’re not Tax Accountants or Tax Lawyers or anything like that. So don’t consider any of these advices.
But we are going to be providing information today from the Franchise Tax Board specifically about issues of alimony and spousal support in California.
And I want to provide that information in video format so it’s more easily found. And today’s video is about can I deduct alimony paid?
Can I deduct alimony or spousal support?
So when you’re making the payments to your spouse for alimony or spousal support it can be a tax deduction for you.
So let’s talk about what the Franchise Tax Board says specifically about that. So this is titled can I deduct alimony paid?
Says the law requires alimony payments to be reported as income by the recipients.
So your spouse would have to report the income she receives or he receives as alimony or spousal support in California.
The person who pays the alimony may take a deduction for these payments. So the payors spouse payee or payor, I forget how that works the payors spouse will deduct or can deduct the spousal support or alimony payments.
And the person receiving has to report that as income. Alimony payments you make are deductibles.
So that’s the advantage here, if all of the following requirements are met.
So, here’s the requirements to be able to take that tax deduction or included as income.
Number one, you pay in case, checks or money orders.
Number two, the divorce or separation instrument does not say that the payment is not alimony.
Let me read that again. The divorce or separation instrument does not say that the payment is not alimony.
Okay, so it has to say a specifically alimony. God, I love how they write this.
Number three, you and your former spouse are not members of the same household when you make the payment.
Okay, that’s interesting. So if you’re a lot of my clients going through divorce are still living in the same house, so, if that’s the case according to this if you’re living with your spouse through the divorce and you’re paying alimony or spousal support that would not qualify you to do this.
Number four, you have no liability to make any payment after the death of your spouse of former spouse.
Number five, your payment is not treated as child support. So that’s obvious.
Child support is not tax deductible. Alimony is, if you meet these five criteria.
And one criteria, because one of the other criteria that they left out is it’s on here but it’s not under this particular question is there has to be a court order in place for that spousal support or alimony payment.
So you can go back and look at that video in this series. So that’s what has to be in place.
That has to be the requirements if you’re going to deduct alimony or spousal support that you pay in California.
Tim Blankenship specializing in California Divorce, I hope this video was helpful.
Please give us a call for a free consultation 661-281-0266 specializing in California Divorce anywhere in California.