- 15 - Consequently, sections 71 and 215, as amended by DEFRA, govern the payments in issue. Section 215(a) allows an individual, in computing adjusted gross income, to deduct amounts paid during the year if those amounts are includable in the gross income of the recipient under section 71(a). Section 215 provides in relevant part: SEC. 215. ALIMONY, ETC., PAYMENTS. (a) General Rule.--In the case of an individual, there shall be allowed as a deduction an amount equal to the alimony or separate maintenance payments paid during such individual’s taxable year. (b) Alimony or Separate Maintenance Payments Defined.-- For purposes of this section, the term “alimony or separate maintenance payment” means any alimony or separate maintenance payment (as defined in section 71(b)) which is includible in the gross income of the recipient under section 71. Therefore, any disqualification from inclusion by the recipient spouse under section 71 will automatically preclude deduction by the payor under section 215. Consequently, the recipient of alimony payments must include those payments when calculating his or her gross income. Sec. 61(a)(8). However, payments to support children generally are not deductible. Sec. 71(c)(1). Therefore, a determination that a payment is or is not “alimony” is also a determination of who must shoulder the tax burden of that payment. Section 71(a) provides that “Gross income includes amounts received as alimony or separate maintenance payments.” AsPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011