The 3-year period starts with the first calendar year in which an alimony payment is made. Payments made under a temporary support order, 2. Payments over at least 3 calendar years that represent a fixed part of business income such as self employment or employee compensation, or 3. Payments that decrease because of death of either spouse or remarriage of the recipient spouse. Such payments are not taxable to the recipient or deductible by the payer.
Payer has little or no gross income from which to deduct alimony.
Payer s other deductions exceed gross income. Payee is in a higher tax bracket than the payer. Avoidance of recapture rules. Deductible Alimony Vs. Child Support Child support payments are not treated as alimony and therefore are not deductible by the payer spouse and are not income to the receiving spouse.