A Reduction in Alimony Payments

A Reduction in Alimony Payments 2017-07-30T20:16:51+00:00
alimony and child support

That a reduction in alimony payments, if “tied” to a child’s life event, can be reclassified as nondeductible child support?

A creatively crafted settlement agreement can quickly turn into a tax nightmare for spouses paying otherwise deductible alimony if the IRS Child Contingency Rules are not adhered to. IRS Code section 71(c)(2), parts (a) and (b) identify situations that can lead to a reclassification from alimony to nondeductible child support.wq

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