- 8 - Section 71(a)(1)5 provides for inclusion in the payee spouse's gross income of periodic payments received by that spouse pursuant to a decree of divorce or separate maintenance in discharge of a legal obligation imposed on or incurred by the payor spouse under the decree or under a written instrument incident to the divorce or separation. Child support payments are generally not includable in the payee spouse's income and are not deductible by the payor spouse. When the decree, instrument, or agreement incident to the divorce covers both alimony payments to the payee spouse and child support payments, those periodic payments are deductible by the payor spouse, and taxable to the payee spouse, unless the terms of the decree, instrument, or agreement fix an amount for the support of the minor children of the former spouses. See sec. 71(b);6 Commissioner v. Lester, 366 5SEC. 71. ALIMONY AND SEPARATE MAINTENANCE PAYMENTS. (a) General Rule.-- (1) Decree of Divorce or Separate Maintenance.–If a wife is divorced or legally separated from her husband under a decree of divorce or of separate maintenance, the wife's gross income includes periodic payments (whether or not made at regular intervals) received after such decree in discharge of (or attributable to property transferred, in trust or otherwise, in discharge of) a legal obligation which, because of the marital or family relationship, is imposed on or incurred by the husband under the decree or under a written instrument incident to such divorce or separation. 6SEC. 71. ALIMONY AND SEPARATE MAINTENANCE PAYMENTS. (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011