Divorce has tax consequences. If you receive spousal support, you must report it as taxable income. If you are paying spousal support, you can deduct it.
If you receive spousal support, you need to plan for the potential tax impact of the income. Unlike an employer, your former spouse won’t withhold any taxes from your support check. You can deduct spousal support payments on your income tax return, but not child support or property distributions. You can, however, make spousal support payments nontaxable and nondeductible as long as it goes both ways and you both agree by stating as much in your marital settlement agreement. You might do this if the spouse receiving support is in a higher tax bracket than the paying spouse or if the paying spouse doesn’t need the tax deduction and the recipient spouse doesn’t want to report the income.
Child support is neither taxable nor deductible. Under Georgia law, an obligation of child support continues until child support modifications are formalized by a formal order of the court. The parties cannot agree to change it without court intervention, and it will not change or terminate when a child goes to live with the other parent. There is no statute of limitation on the collection of past due support, and interest will be added at the statutory rate from the time each payment becomes due.
Our divorce attorneys are based in Augusta, GA (Georgia). If you seeking divorce in Augusta, GA (Georgia) or anywhere throughout the CSRA, including Columbia County, Richmond County, Lincoln County, McDuffie, Jefferson and Burke Counties, Evans, Appling, Waynesboro, Louisville, Thomson, Lincolnton, Girard Georgia & Aiken, South Carolina & North Augusta SC, contact us.
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Shawn Gunder is an Augusta GA divorce lawyer & Georgia Military Divorce Lawyer He is an Augusta military divorce lawyer, GA child custody attorney and Augusta Georgia child support attorney.
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