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I. Child Support
An individual may generally deduct payments made to a spouse
during the taxable year to the extent those payments are alimony
includable in the spouse’s gross income. See sec. 215(a) and
(b). Any payment which the terms of the divorce decree fix as a
sum payable for the support of children is not alimony. See sec.
71(c)(1). If any payment is less than the amount specified in
the divorce decree, to the extent the payment does not exceed the
amount required to be paid for child support, such amount shall
be considered support. See sec. 71(c)(3). Pursuant to the
divorce decree, petitioner was required to pay Ms. Holdman $8,000
by the end of 2002 with respect to his children’s uninsured
medical expenses and Ms. Holdman’s share of his retirement pay
(i.e., $2,687 relating to his children’s uninsured medical
expenses and $5,313 relating to Ms. Holdman’s share of his
retirement pay). Petitioner started making payments in 2002. In
that year, petitioner made lump-sum payments to Ms. Holdman
totaling $6,074 (i.e., $1,926 less than the amount required
pursuant to the divorce decree). Accordingly, $2,687 of the
$6,074 paid by petitioner in 2002 is, pursuant to section
71(c)(3), child support and cannot be deducted as alimony. See
Blyth v. Commissioner, 21 T.C. 275 (1953). We must determine
whether the remaining $3,397 is alimony.
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Last modified: November 10, 2007