When it comes to divorce, there are all sorts of issues that could arise, such as the custody of children and child support. However, spousal support can be especially challenging for certain people, whether someone is worried about being able to maintain their standard of living after divorce or unsure if they will be able to afford the alimony payments they are obligated to make. In Naples, and in all other Florida communities, there are additional matters that people dealing with spousal support should be aware of, such as how it could affect their taxes.
The Internal Revenue Service states that alimony payments are, in fact, taxable. If you receive spousal support, you will need to report it to the IRS as income. Furthermore, if you make spousal support payments, you should know that alimony can be deducted as well. Having said that, it is also crucial to know that some payments may not be seen as alimony by the IRS, such as payments that were made voluntarily and were not obligatory because of divorce.
Whether you have to pay alimony or are receiving alimony payments, you should always make sure you understand what is required of you in order to avoid complications, such as failing to pay taxes on alimony you received. Also, if you have any questions about spousal support, you should not hesitate to look for answers as soon as possible. Please understand that this post does not serve as any type of substitute for experienced legal counsel.