Ways to exclude the maximum of $500,000 in divorce-related home sale capital gains from taxation
Capital gains tax on the sale of a marital home
What’s required to be able to claim the Child Tax Credit
How the new “Tax Cuts and Jobs Act” may affect divorcing couples.
There are key things to be aware of as regards child support and tax, even though it is not tax-deductible.
When divorcing spouses’ incomes differ by a very large amount (placing them in much different tax brackets) and both child support and spousal is appropriate, the spouses can save significantly overall on their income taxes by designating the payments as “family support.”
A previous post gave the basic rules for making spousal support tax deductible. This post discuss two somewhat unusual but important circumstances that affect the tax deductibility of spousal support.
Unless spouses agree otherwise in their final divorce documents, spousal support is generally tax deductible for the payer and reportable as income for the recipient. But there are a number of spousal support tax considerations.