the treatment of spousal maintenance after the TCJA of 2017 is:
not deductible to the payor and tax-free income to the recipient
what does a judge generally consider when awarding child support?
the child support guidelines
what is the purpose of rehabilitative maintenance?
to provide temporary financial help until the recipient is able to earn enough to be self-sufficient
which parent is entitled to take the childcare credit?
the custodial parent who pays for childcare expenses
what will occur if either the “six month rule” or the “multiple-reduction rule” applies?
spousal support will be treated as child support
can the custodial parent transfer the dependency exception?
yes, every year or for multiple years
what is the relationship between child support and maintenance, and how child support changes?
as maintenance increases, child support decreases
life insurance is required to cover spousal and child support when?
only if a judge orders it
how can depreciation recapture differ in the case of an item being transferred incident to divorce?
the depreciation can be recaptured from the transferee rather than the transferor
what are the exceptions to spousal support recapture?
- either spouse dies before the end of the 3rd year
- either spouse remarries before the end of the 3rd year
- payments fluctuate outside of the paying spouse’s control
- payments are temporary support payments
- spousal support payments decline by $15,000 or LESS over the first 3 years
is child support modifiable?
yes
what is the governing code section that permits the custodial parent to take the earned income tax credit?
IRC 32
is the earned income tax credit refundable?
yes
prior to 1972, were there statutory provisions explicitly dealing with spousal support payments?
no
Congress required certain spousal support payments to be included in the recipient spouse’s income and permitted the payer spouse to deduct these payments as an itemized deduction
Revenue Act of 1942
spousal support provisions were extended to apply to payments made under a decree for support in which the parties are physically separated
Revenue Act of 1954
this act permitted spousal support to be deductible for the purposes of calculating AGI so that a taxpayer who does not itemize deductions may nevertheless deduct spousal support
Tax Reform Act of 1976
this act simplified the definition of spousal support and eliminated many of the issues involving the transfer of marital property between spouses
Tax Reform Act of 1984
this act eliminated the deductibility of maintenance payments for the payer and the inclusion as income for the recipient for divorces finalized after Dec. 31, 2018
Tax Cuts and Jobs Act of 2017
what are the 3 ways to guarantee spousal support?
- life insurance
- disability insurance
- annuity
Form 8332
form filed for dependency exemption
a nonrefundable tax credit for a custodial parent who pays child or dependent care expenses so that they can be gainfully employed
childcare credit
who is able to claim the childcare credit?
the custodial parent
can a parent claim the childcare credit if filing MFS?
no
