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Is Child Support Considered Income in Orlando, FL?
Domestic support payments could have tax implications. These payments include child support and alimony. Understanding when to include support payments as income for tax purposes is crucial for parents.
Does Child Support Count as Income in Florida?
The Internal Revenue Service (IRS) states that child support payments are not considered taxable income for the parent receiving the payments. Likewise, child support payments are not deductible by the parent paying support. Therefore, you do not include child support payments on your federal tax returns.
Child support payments are not considered taxable income, nor are they deductible for state income tax purposes. Therefore, you do not include child support payments on your state income tax return.
Is Spousal Support Taxed as Income in Florida?
Do not confuse child support payments with alimony or spousal support payments. You may or may not be required to report spousal support as taxable income when you file your federal tax return. It depends on when your divorce decree was entered.
Before January 1, 2019, alimony payments were deductible by the payer. The recipient had to pay taxes on the alimony payments.
However, alimony payments are not considered income or tax deductible for divorces or separation agreements executed after December 31, 2018. The same applies if you modified a prior order and the new order specifically states the new tax law applies to future spousal support payments.
Florida amended its laws to reflect the changes in federal tax laws. As a result, spousal support payments are not taxed or deductible on a state level for all divorce and legal separation agreements after December 31, 2018.
How Is Child Support Calculated in Orlando, FL?
Florida calculates child support payments based on statewide child support guidelines. The guidelines use the combined income of both parents and the number of children being supported to calculate the amount of child support obligation. Each parent pays a percentage of the child support obligation based on their percentage of the combined income.
However, family court judges can consider other factors when deciding how much a parent should pay for child support. Factors that can impact child support payments in Florida include:
The daycare and healthcare costs for the child
Any special needs the child has that result in additional expenses
The number of overnight visits the child spends with the non-custodial parent
The child’s standard of living before the divorce
A parent’s ability to pay child support
The monthly expenses for each parent
Judges can consider other factors they deem relevant to calculating child support obligations and payments. Working with an experienced Orlando child support lawyer is the best way to protect your rights during a child support case.
How Are Alimony Payments Calculated in Orlando, FL?
Alimony payments are calculated differently than child support payments. There are no standard guidelines for judges to determine the amount and duration of spousal support.
Factors that judges consider in alimony cases include:
The health and age of each spouse
The responsibilities of each spouse for raising minor children
The ability to pay alimony and the financial need of the spouse who will be receiving alimony payments
The standard of living the spouses enjoyed during their marriage
All sources of income for both parties
A spouse’s sacrifices of educational, professional, and earning opportunities to benefit the other spouse or the marriage
The tax consequences for each spouse
A spouse’s financial resources, including equitable distribution of marital property and the separate property and debts of each spouse
A spouse’s earning capacity, vocational skills, education, and employability
Short-term marriage if the parties were married less than seven years
Moderate-term marriage if the parties were married for 7 to 17 years
Long-term marriage if the parties were married for more than 17 years
Judges rarely grant long-term alimony payments for short-term or moderate-term marriages. Instead, judges often grant durational alimony payments in short and moderate-term marriages. Durational alimony does not last longer than the length of the marriage itself.
Florida law creates a rebuttable presumption that alimony is not granted for short-term marriages. However, some exceptions could overcome the presumption.
Reach Out To an Experienced Orlando Family Lawyer
Do you have questions or need assistance with a child- or spousal-support-related matter? Reach out to an experienced family law attorney for help understanding your legal rights and obligations. A lawyer can ensure your interests are protected throughout the entire process.