Legal Question in Family Law in California
my divorce which was final a year ago states that my ex must pay me $600 a month child support for our 8 yr old daughter. i have been using that money to go directly towards rent for where my daughter and I live. We rent a room from another lady and my ex has been paying her thru his bank. He set it up so that the bank mails my landlady a check for $600 each month and I pay her the rest of the rent directly with cash. Come time to do his taxes for 2009 he finds out that child support cannot be deducted, only alimony. Likewise when I did my taxes i did not claim it as income. He wants to say it was alimony but i told him he cant. I believe he thinks he has found a way around this by having a bank receipt each month for rent paid towards my landlady. He is going to say this is alimony. My question is this: even though he gets a receipt from either my landlady or from his bank showing he paid $600 each month towards my rent, does this somehow make a difference when it comes to filing taxes? The divorce agreement specifically says he must pay $600 child support. Thanks so much.
2 Answers from Attorneys
Unless your divorce agreement (incorporated in the judgment) states that the payment is "spousal support" or "family support" it is not taxable to you and not a reduction in his taxable income. That is real clear in the law. It doesn't matter what he puts on his checks or who he pays. It is not unusual to increase the amount of the monthly support payment and calling it spousal support or family support, however, that would mean that he pays more, and saves more in his taxes, and your receive more, enough to pay the taxes on what you receive, plus more. Since he is probably in a higher tax bracket it would allow both or you to have more after tax spendable income. Most family law attorneys have the program to make the calculation and I might suggest you get a consultation and have that calculation made. Good Luck, Pat McCrary
Short answer: the order or judgment controls everything. If it says "child support" nothing else matters.