- 4 - individual legally separated from his spouse under a decree of divorce or of separate maintenance, the payee spouse and the payor spouse are not members of the same household at the time such payment is made, and (4) there is no liability to make any such payment for any period after the death of the payee spouse and there is no liability to make any payment (in cash or property) as a substitute for such payments after the death of the payee spouse. Secs. 71(b), 215(b). For Federal income tax purposes, however, alimony does not include any part of a payment that the terms of the divorce instrument fix as a sum payable for the support of the children of the payor spouse. Sec. 71(c)(1). Thus, child support payments are neither includable in income under section 71 nor deductible under section 215. Relevant for our purposes, an amount is treated as fixed under section 71(c)(1) and thus treated as child support if it will be reduced “on the happening of a contingency specified in the instrument relating to a child (such as attaining a specified age, marrying, dying, leaving school, or a similar contingency)”. Sec. 71(c)(2)(A). Temporary regulations promulgated under section 71 make clear that for purposes of section 71(c), “a contingency relates to a child of the payor if it depends on any event relating to that child, regardless of whether such event is certain or likely to occur.”Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011