Maintenance and taxation
The tax treatment of maintenance: deductibility for the payer and taxation for the recipient.
Spousal maintenance is tax deductible for the payer as a personal deduction and is taxed to the recipient as income from work and housing. Child maintenance has not been deductible since 2015. The tax implications are important when calculating net maintenance and are taken into account in the Tremanorm calculations.
“Due to the tax deductibility of spousal maintenance, he could pay gross more than he owed net.”
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