Alimony is tax friendly
In most cases, alimony is tax friendly. As a matter of fact, alimony:
- Can lower your tax bill
- Is an above-the-line deduction, not requiring you to itemize it in order to get the tax advantage
If you continue to share a residence with your ex-spouse
It is important to note that you may not be able to deduct any alimony payments made during the time you share a residence with your ex-spouse.
Child support payments are not as tax-friendly
Child support payments are considered tax-neutral. Child support payments do not affect your tax situation in any way. That is why many divorcees attempt to classify a portion of their child support payments as alimony.
If you are facing an Arizona divorce, it is important to understand all the tax ramifications involving your divorce. Contact us today if you would like more information about the divorce process and to order our free book, Arizona Family Law - How to Handle Tough Issues in Tough Times.
If you are facing a divorce, contact one of our experienced Arizona family law attorneys at the law firm of Curry, Pearson & Wooten, PLC by calling 602-258-1000 or toll free at 1-888-9AZLAWCOM (888-929-5292).