How does California treat alimony received?
How does California treat alimony received?
While the new federal TCJA changed tax treatment for alimony payments in 2019, California still allows a deduction for the spouse who pays alimony and inclusion to income for the recipient spouse. Your payment is not treated as child support or property settlement. A joint return is not filed.
Is spousal deductible deductible in 2019 in California?
There are a few changes in California alimony law that have come into effect for 2019 and should be taken note of. One of the biggest 2019 changes has to with spousal support. Now, alimony will no longer be tax deductible, and the recipient spouse will not have to pay any taxes on it.
Can you deduct alimony on your taxes?
Spousal support is usually taxable and deductible And they must pay income tax on the payments. The spouse who pays the support (the “payor”) can claim it as a deduction. (It’s like deducting contributions to Registered Retirement Savings Plans or child care expenses).
Where do I enter spousal support on taxes?
Claiming Support Payments in the tax return Claim the total child and spousal support payments in line 21999 of your income tax and benefit return. Claim the spousal support payment portion on line 10.2020
How much spousal support is deductible?
A one-time lump sum spousal support payment is not tax deductible from the payer’s income tax calculations and is not required to be included in the payee’s taxable income. Legal fees associated with the lump-sum support payment are also not tax deductible.
