The tax impact of alimony differs by type. Partner alimony may be deductible for the payer and taxable for the recipient, while child alimony has no tax consequences.
Partner Alimony in Zoetermeer
| Role | Tax Regulations |
|---|---|
| Payer | Deductible as personal deduction |
| Recipient | Taxable as income source in box 1 |
Buyout of Partner Alimony
In the case of a one-time buyout of partner alimony, there are two tax scenarios:
- Periodic payment: Deductible for the payer, taxable for the recipient
- Asset division: No tax impact
The precise wording in the divorce settlement is decisive for the tax treatment.
Child Alimony
No tax rules apply to child alimony:
- No deduction possible for the payer
- No taxation for the recipient
Financial Impact
Due to the deductibility of partner alimony:
- The payer receives a tax refund
- The net costs are lower than the gross amount
- The recipient nets less than the gross amount received
Net Calculation of Alimony
| Payer (e.g. 37% rate) | Recipient (e.g. 19% rate) | |
|---|---|---|
| Gross alimony amount | € 1.000 | € 1.000 |
| Tax effect | - € 370 (refund) | - € 190 (levy) |
| Net result | Costs € 630 | Receives € 810 |
Tax Return and Alimony
Partner alimony must be reported in the income tax return:
- Payer: under 'costs for maintenance obligations'
- Recipient: under 'received family law benefits'
Is it necessary to keep proofs?
Yes, keep payment proofs and the settlement at hand. The Tax Authorities may request proof going back up to 5 years.What if I receive alimony via the LBIO?
The LBIO provides an annual statement that can be used for the tax return. It states the amount received.Can I apply for a provisional tax refund?
Yes, as a payer of partner alimony, you can apply for a provisional refund to receive part of the benefit monthly.Help in Zoetermeer
For legal questions about alimony and tax, you can go to the Juridisch Loket Zoetermeer. In addition, the District Court of The Hague (district) handles cases relating to Zoetermeer.
Frequently Asked Questions about Alimony
Can I deduct partner alimony?
Yes, partner alimony is deductible in box 1 as a personal deduction. The benefit depends on your tax rate. Keep documentation such as payment proofs well.
Must received alimony be declared?
Yes, received partner alimony must be declared as income in box 1. LBIO statements serve as proof.
What are the tax rules for buyout?
The tax treatment depends on the wording in the settlement. Check this with a specialist.
Can I get monthly tax benefit?
Yes, via a provisional refund, you as payer can receive benefit monthly. This can be applied for online.
Does child alimony have tax consequences?
No, child alimony is neither deductible nor taxable, unlike partner alimony.