Alimony vs. Child Support

Though both alimony and child support are payments from one spouse to the other as a result of a divorce, the tax implications are drastically different. Alimony paid qualifies for an income tax deduction, while alimony received counts as taxable income for the receiving spouse. Child support, on the other hand, isn't a deduction for the payer, nor does it count as income to the receiver. For example, if James pays Kelly $30,000 in alimony during the year, James gets a $30,000 tax deduction and Kelly must report an extra $30,000 of income. But if James pays Kelly $30,000 in child support, James doesn't get to write off the payments, and Kelly doesn't have to include them in her taxable income.