Is support pre tax money?

[Cross Hair]

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]

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]

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]

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]

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.