• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Is support pre tax money?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

What is the name of your state (only U.S. law)? Ohio

Neither of us has filed papers yet, we are trying to figure things out first to avoid a lot of attorney expenses so I just have a quick question.

Is spousal support paid with pre tax dollars? This will have a pretty big inpact on weather I can afford to keep our house or not.

Thanks,
Cooper
 


Ohiogal

Queen Bee
What is the name of your state (only U.S. law)? Ohio

Neither of us has filed papers yet, we are trying to figure things out first to avoid a lot of attorney expenses so I just have a quick question.

Is spousal support paid with pre tax dollars? This will have a pretty big inpact on weather I can afford to keep our house or not.

Thanks,
Cooper
The person RECEIVING spousal support pays the taxes on it.
 

tranquility

Senior Member
DANGER to the pro se divorce. Alimony reduces the payer's adjusted gross income. Alimony has a very specific meaning under IRS regulations. If it is so important so as to stay in your house, see a tax professional to make sure your agreement will fall under the regulations.
 

mistoffolees

Senior Member
The person RECEIVING spousal support pays the taxes on it.
And the person paying it can deduct it from income. HOWEVER, the rules are quite strict, so OP should make sure they understand the rules and, ideally, consult with a tax professional. For example, if the amount paid drops off too quickly over time, it is considered property settlement rather than spousal support.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Ohio

Neither of us has filed papers yet, we are trying to figure things out first to avoid a lot of attorney expenses so I just have a quick question.

Is spousal support paid with pre tax dollars? This will have a pretty big inpact on weather I can afford to keep our house or not.

Thanks,
Cooper
Alimony/spousal support is tax deductible to the payor, and taxable income to the payee.

However, it is not pretax dollars in the sense that health insurance or a 401k is pretax dollars. Your employer won't treat it as pretax dollars, but you would get the benefit of deducting it from income on your tax return.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top