Deduction for Alimony Payments in the 2024 Tax Return: Who is Eligible?

Understanding Alimony Payments in Tax Returns

Alimony payments can be a significant burden for individuals going through separation or divorce.
It’s essential to distinguish between payments made to an ex-spouse and those made for children, as they follow different tax rules.
When it comes to tax deductions, alimony payments can only be claimed under specific circumstances.

Alimony Deductions for Ex-Spouse in Tax Returns

According to the DPR n.917/1986, alimony payments to an ex-spouse are tax-deductible under certain conditions.
These payments can reduce the taxable income and result in lower tax payments for the paying party.
However, there are criteria to meet to qualify for this deduction, such as a legal separation or divorce.

The deductible amount is determined by a judicial ruling specifying the supported amount.
It’s crucial to note that not all alimony payments qualify for deduction, such as lump-sum payments or mortgage payments instead of alimony.

Additionally, the deduction extends to expenses like ISTAT adjustments and overdue payments, subject to specific conditions set by the court.
Even lease payments and condo expenses determined by the court can be deductible, albeit limited to 50% if the property is shared with the ex-spouse and children.

Alimony for Children and Its Tax Implications

Unlike alimony for ex-spouses, child support payments do not qualify for tax deductions.
Instead, child support falls under separate tax benefits and is typically not considered taxable income for the recipient.

With recent changes integrating child benefits into a single payment until the child turns 21, the support is divided equally between parents, providing financial assistance to the supporting parent.

For ISEE certification, both the payer and the recipient must declare alimony payments, including those intended for children, as it affects income calculations differently for each party.

By understanding the nuances of alimony payments and their tax implications, individuals can navigate the complexities of tax returns during separation or divorce proceedings.