California Support Payment Tax Mistakes | California Divorce
Today, we’re answering the question about spousal support, child support and family support and some of the common mistakes made by tax payers.
Now we’re getting this information right from the State of California Franchise Tax Board.
And we’ve already done a couple video where we discussed family support, child support and spousal support separately.
But I wanted to read to you what the State of California Franchise Tax Board says some people are making as far as mistakes related to support with that family support, child support and spousal support.
So it says many tax payors mistakenly consider all payments made to their former spouses as deductible alimony payments.
For example, tax payers frequently include none deductible child support payments as alimony deductions.
On the other hand many alimony recipients do not consider the payments from their former spouses as taxable income and failed to report them.
Some recipients make the common mistake of not reporting income designed as Family Support by the Divorce Decree.
This type of support is considered alimony income in most cases.
Now so basically what that means is and we can kind of recap the three previous videos child support is not tax deductible according to the Franchise Tax Board.
Spousal support is tax deductible and thus reportable income to the spouse receiving income.
So that’s essentially the three mistakes that folks are making. And you could see that, that would have it on your taxes if you are not deducting your spousal support payment you’re making, if you’re not reporting the spousal support payments you are receiving or you’re deducting or claiming the income of child support which you shouldn’t do.
So I hope that answers the question of the common mistakes made by tax payers regarding to support payments in California.
If you have any questions you can feel free to give me a call. We do handle divorce cases throughout California.
We specialize only in divorce. Our number here is 661-281-0266.
If you need modified support payments if you have questions about support feel free to call I’ll be happy to provide a free phone consultation for you.
The number is on your screen and we’ll talk to you soon.