Quote:
Originally posted by KrazyKracka
ok I have one more fo you now, let me try to explain it...
A coworker of mine is divorced and remarried, he now has 2 step children and another child of his own to his current wife. His wife works as well. His EX, however will not work a job and keeps taking him back for child support every three years for the 2 children he had to that wife. When she takes him back, will the tax return he gets count as income for that year, or the year before?
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Child support is not deductible to the payor, or income to the payee.
Alimony, however, would be deductible to the payor and classified as income to the payee as long as it meets certain requirements.
Also, your friend and his ex might be able to hammer out an agreement as to who gets to claim the children as dependents on the return, since both of them can't claim them at the same time.
He should see an accountant (quickly, before any agreement is signed) and also consult with his attorney on this one.