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In the event of a divorce, and if there are children in common, there are obligations that parents have towards their children. Among these obligations is the alimony and the respective regularization of parental responsibilities.
What it is, until when this pension must be paid, or how these expenses are declared at IRS level are some of the topics to be discussed throughout this article.
What is alimony?
A alimony It is a monthly payment that parents who do not share a home with their children have to pay. This payment is intended to guarantee the support of the children.
Clothing, health, housing or security expenses are also taken into account in the alimony.
How to request alimony?
The request for alimony depends on the age of the young person involved in that alimony. If the young person is a minor, maintenance is requested through the courts.
If the young person is of legal age, the parents must apply for maintenance at a civil registry office.
If you prefer legal support, you can contact divorce lawyers in order to receive all the information appropriate to your case.
Until what age is alimony payable?
This benefit is paid until the child reaches the age of majority and turns 18. However, if the young person intends to continue studying, or is financially dependent on the other parent, maintenance must continue to be paid until the latter reaches 25 years of age.
How is alimony calculated?
The calculation of alimony has several variables. First, all of the child's expenses for clothing or food, for example, are taken into account.
The costs that the parent who has custody of the child has are then assessed, and the financial effort they make to provide the young person with a decent standard of living is noted.
What to do in case of non-compliance?
There are situations where the person responsible for paying the alimony defaults, that is, they do not pay the alimony or are late.
In these cases, social security is responsible for paying the pension, through the guarantee fund. To do this, the child's relative must go to the court where the child support process was filed and activate the default mechanism.
Is it mandatory to declare alimony?
As it is considered pension income, alimony must be declared in the IRS.
Where do I declare the alimony I receive?
Whoever receives alimony must declare it in table 4A of Annex A, with code 405 and the Tax Identification Number of the person paying the alimony.
In the case of those who pay it, the declaration is in table 6A of Annex H, model 3. You must also use the NIF of the pension dependents, and also indicate the value of the maintenance pension.
How to declare alimony with the IRS?
Alimony at the IRS: declare for those who receive it
The amount is, according to the 72nd IRS code, taxed independently at the rate of 20%. If you wish, you can include this payment in other expenses.
Alimony at the IRS: declare for those who pay
You can deduct this expense from your IRS collection. According to the article 83. - A of the CIRS, the person paying the pension can deduct 20% from the amounts paid, in relation to alimony.
This can be defined through an approved agreement or by court ruling.
Alimony with the IRS: declare in situations of shared custody
In shared custody, there may be a division of the children's fixed expenses with the IRS.
The mother can deduct 60% and the father 40% from the maximum limit for the expenses in question. To do this, they will have to indicate the taxpayer numbers of their dependents and ex-husband/wife in the 3D table.
In Table 8 of Annex H, expenditure on education and health must be included.
Alimony in the IRS: declare in situations of shared custody with alternating residence
The parent is entitled to deduct 20% from the amount, but cannot deduct other expenses for the children, such as health or education.
Alimony in the IRS: declare in situations of shared custody with exclusive residence
In cases like this, the conditions in the above point are used to benefit the parent with whom the children live.
To find out more about these issues, contact us, where you have the best professionals to help you!
Conclusion
Until at least 18 years of age, parents must pay monthly maintenance, which aims to ensure the basic assets of young people whose parents are divorced. If this pension fails, social security will pay it.
When it comes to the IRS, the rules are not the same for all situations. In addition to having to be declared, the alimony situation varies depending on who pays and who receives it, or the child custody regime.
note: The information presented in this article is for informational purposes only and should not be construed as legal advice. Although we have made every effort to ensure the accuracy of the content, we assume no responsibility for any inaccuracies, omissions or legal changes that may occur after publication. If you are facing a specific situation or have questions about any of the matters covered, we strongly recommend consulting a lawyer or legal specialist for advice tailored to your situation.
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