Why is alimony considered taxable income while child support is not?
The reasons for taxing alimony but not child support are [1] that alimony (in some sense) is not seen as being for the support of family and [2] the government wanted to provide an indirect subsidy to the spouse receiving alimony. Without further explanation, that may seem like a baffling answer… First a word about the full tax treatment of alimony & child support: Although alimony is taxable to the recipient, the payor gets a deduction for it, unlike for the payment of child support. That is, the payor reduces taxable income by paying alimony & the recipient increases taxable income by getting alimony. On the other hand, the payor does not reduce taxable income by paying child support & neither does the recipient increase taxable income. Also, if the spouses so choose, the alimony payments can be tax-exempt to the recipient if the payor will not receive the deduction — basically treating alimony payments like child support. Reason [1]: Generally the government treats payments betwe
