- 12 - B. Background Alimony is taxable to the recipient and is deductible by the payor. Secs. 71(a), 215(a). Alimony payments are not child support payments. Sec. 71(c). Child support payments are neither includable in income under section 71 nor deductible under section 215. Child support is that part of a payment which the divorce instrument fixes as payable for the support of the children of the payor spouse. Sec. 71(c)(1). An amount is treated as fixed under section 71(c)(1) if it will be reduced “on the happening of a contingency specified in the [divorce] instrument relating to a child (such as attaining a specified age, marrying, dying, leaving school, or a similar contingency),” sec. 71(c)(2)(A), or “at a time which can clearly be associated with a contingency of a kind specified in subparagraph (A),” sec. 71(c)(2)(B). The parties agree that this case should be decided by applying section 72(c)(2)(B) and section 1.71-1T(c), Q&A-18, Temporary Income Tax Regs., 49 Fed. Reg. 34457 (Aug. 31, 1984).2 2 Sec. 1.71-1T(c), Q&A-18, Temporary Income Tax Regs., 49 Fed. Reg. 34457 (Aug. 31, 1984), provides: Q-18. When will a payment be treated as to be reduced at a time which can clearly be associated with the happening of a contingency relating to a child of the payor? A-18. There are two situations, described below, (continued...)Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011