Question

Carter divorced his wife in the current year. In accordance with the divorce decree, he paid her $15,000 as a property settlement in the division of their net assets. In addition, he paid her $10,000 in partial fulfillment of the annual requirement to pay her $12,000 a year in child support. What amount may Carter deduct on his tax return for the current year

Answer 1

$0 (at least under current laws)

Step-by-step explanation:

Child support payments are not tax deductible. Even alimony payments made to former spouses are not tax deductible anymore.

Any property settlements resulting from a divorce are not tax deductible either nor are they considered taxable income for the receiving party.

So in this case, until the current law changes, Carter cannot deduct any amount from his tax return.