Number: RS20004
Title: Tax Implications of Divorce: Treatment of Alimony, Child Support, and the Childs Personal Exemption
Authors: Louis Alan Talley, Government and Finance Division 
Abstract: Alimony payments are deducted from adjusted gross income by the spouse making payments and including in the income of the former spouse receiving payments. Child support payments are viewed as intrafamily transfers of funds that absent divorce would not have given rise to federal income tax consequences and as personal, family expenses are not deductible in determining the taxable income of the spouse making payments or includible in income to the former spouse receiving the payments. The Congress resolved dependency exemption disputes by providing a rule: the custodial parent always receives the child's personal exemption unless the right to claim the child's personal exemption is waived in writing by the custodial parent.
Pages: 6
Date: May 30, 2002