Gordon J Maier & Company, LLP
Newsletter
Remarriage with Children: Income Tax Considerations

Alimony payments:

Pre-2019 divorce

  • Usually must be included in the gross income of the recipient
  • Can be deducted by the payer (if all requirements are met)
  • The divorce agreement may designate alimony as nontaxable and nondeductible

Post-2018 divorce

  • Not included in the gross income of the recipient
  • Can't be deducted by the payer

Marrying someone with children from a prior relationship can create a variety of income tax questions. Here are some points to consider.

Child support payments:

  • Ordinarily considered nontaxable income of the recipient
  • Are not deductible by the payer

Medical expenses deduction:

  • Custody of the child isn't required
  • Claiming the child as a dependent isn't required (although you must be eligible to claim the child as a dependent)
  • Medical expenses are only deductible as an itemized deduction on Schedule A, Form 1040, to the extent they exceed 7.5% (10% in 2019) of adjusted gross income (AGI) on the tax return

Child and dependent care credit:

  • Can only be claimed by the custodial parent
  • Must be for child-care expenses incurred so you can work
  • Can claim, if qualified, even if you're not claiming the child as a dependent because you release the right to claim the child to the noncustodial parent

Child (and additional child) tax credit:

  • Can claim, if qualified, for a child you claim as a dependent
  • Custody of the child isn't required

Education tax credits:

  • You must be claiming the child as a dependent
  • You must have paid qualified tuition and/or related expenses


Prepared by Broadridge Investor Communication Solutions, Inc, Copyright 2011