Divorce usually results in difficult financial situations, which your alimony lawyer in Owings Mills will help you sort through. You may also wish to consult an accountant when it’s time to file your tax return, instead of handling tax changes yourself. If you’re the parent with primary physical custody of the child, you’re entitled to receive child support. These payments do not have to be reported as income—you’ll receive them tax-free to defray the expenses of rearing your child. If you’re awarded alimony after the divorce , you will typically have to report these checks as income, and they’ll be subject to taxation.
You might find yourself making alimony and child support payments after the divorce. In this case, your tax situation will be similar to that of your ex’s, only in reverse. You cannot deduct child support on your taxes in order to reduce your tax liability. However, you can usually deduct alimony payments, provided those payments are made in cash, rather than property. Additionally, alimony payments must be court-ordered if they are deducted.