If you have to pay spousal support, also known as alimony or spousal maintenance, you might have a number of issues to deal with. Sometimes, people struggle to make payments as a result of financial challenges due to a medical crisis or the loss of their job. You should note that some of those responsible for paying alimony can deduct the payments on their tax return, although there are a number of requirements and not everyone who pays alimony is eligible.
If you want to deduct alimony payments on your tax return, it is essential to take a close look at the requirements.
Deducting spousal support and the date of your divorce
The Internal Revenue Service outlines a number of conditions that you must meet in order to deduct spousal support payments on your taxes. For starters, if you finalized your divorce in 2019 or later, you cannot report spousal support payments as a tax deduction, and your former spouse will not have to report spousal support received as income. If you got divorced in 2018 or earlier, you can deduct spousal support, so long as you meet other requirements.
Other conditions you must satisfy to deduct spousal support
In order to deduct spousal support, you must make payments via cash, check or money order. You cannot file a joint return with your former spouse, you cannot live in the same household as your former marital partner and you must make payments under a divorce or separation agreement. Moreover, the payment cannot count as a property settlement or child support.
Deducting alimony on your taxes could help from a financial viewpoint, but make sure you determine your eligibility beforehand.