Do you have to claim spousal support as income?
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Do you have to claim spousal support as income?
If you receive monthly spousal support, you must pay income tax on the total support you receive each year. And, you can claim a tax deduction on legal fees spent to get monthly spousal support. But, if you receive all of your spousal support at once in a lump-sum payment, you do not pay income tax on it.
Is interim spousal support taxable?
Ordinarily, lump sum spousal support is neither deductible to the payor, nor taxable in the hands of the recipient. This means that any calculation of periodic spousal support, or increased support, must be discounted or netted down to arrive at an after-tax amount.
What does permanent alimony mean?
Permanent alimony is awarded to provide the receiving spouse funds to pay for costs of living that was established during the marriage. This form of alimony is often awarded to a spouse that lacks the financial ability the meet those costs on their own after divorce.
