Herb Smith <smithff33[at]aol.com> wrote:
- quote -

Also note that if your ex-spouse later decides he/she
doesn't want to pay any more, alimony is just another court
judgment. You may be able to get it enforced, but it may
take some effort. But "child support" has been given
special treatment by our lawmakers. If the ex-spouse
doesn't pay "child support", the government will
automatically deduct it from his/her tax refund, and may
refuse to renew his/her driver's license, among other
penalties.

If the ex-spouse is unsure of his/her future
ability/willingness to pay, he/she will be _very_ resistant
to such a change.

--
I pledge allegiance to the Constitution of the United States
of America, and to the republic which it established, one
nation from many peoples, promising liberty and justice for
all.

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"Herb Smith" <smithff33[at]aol.com> wrote:
- quote -

This would accomplish the goal desired but may not be such a
good idea. In order to qualify as child support, the
payments must stop when the child reaches 18 or otherwise
becomes emancipated. By doing this, the TP gains a little
current tax advantage but loses the long-term income.

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effi <effi[at]ev1.net> wrote:

- quote -

Sure, go back to court and have the amount received changed
from ALIMONY to CHILD SUPPORT. Then it won't be taxable to
you (as alimony is), and you still have the child care
credit. The payment will not be deductible by your
ex-spouse, so you may encounter some resistance to this
change.

Of course, reducing your taxable income in this way may
reduce your tax liability to the point where the child care
credit gives you no benefit (it is a NON-refundable credit).

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- quote -

Hopefully, this person is working as alimony is not earned
for the child care credit. But to answer your question, no.
Form 2441 rates are going up in 2003 however.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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individual taxpayer receives alimony and pays day care
provider similar amount

is there no way to restructure this so there is more of a
deduction to taxpayer than the (limited) child care credit?

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