RHODE ISLAND Part 68

Tax Consequences of an Alimony award

An award of alimony has Federal Income Tax consequences. Alimony is taxable to the spouse who receives the alimony and is deductible by the spouse who pays alimony. In order to qualify as alimony, Alimony must terminate on the death of the payee spouse and upon the remarriage of the payee spouse. Payment of alimony is a taxable event to the payee spouse. This is very different from payment of child support. Payment of child support is a non taxable event. The parent who pays child support is not entitled to a deduction for payment and the receiving spouse does not include the payment as income. Therefore it is tax free money to the parent who receives the child support.26 U.S.C.A. 71. The IRS has rules and regulations concerning what types of payments constitute alimony. The IRS has rules and regulations concerning when a parent tries to mask child support payments as alimony. Please consult with a Rhode Island Divorce Lawyer concerning the tax implications of an Alimony Award.