Alimony is actually tax deductible. However, it will need to be documented by either a written agreement signed by both parties or by an actual court order. In other words, in the eyes of the IRS, word of mouth agreements are not enough to warrant a deduction. If you are receiving alimony, that too is income that must be reported. However, in order for alimony payments to be deductible, separate returns must be filed.
Child support is never deductible, either for the parent who pays it, or the parent who receives it.
Amerix is the largest service provider to the credit counseling industry in the United States. Based in Columbia, Maryland, we offer a wide range of services to non-profit, credit counseling agencies that help you get out of debt faster. With a network of over 50,000 creditors nationwide, our agencies have the ability to restructure your credit terms and create one monthly bill to pay. It explains how to determine the real value of marital property including houses, businesses, retirement plans and investments and how to negotiate a settlement that is fair to both sides. The book has proven to be invaluable to people experiencing divorce or separation.