Is spousal support taxable when it is received?

In Washington, spousal support is considered taxable income when it is received. This means that the person who is receiving support payments must report the payments as income to the IRS and pay taxes on the money. In general, spousal support payments are taxed at the recipient’s marginal tax rate, which is the highest tax rate that the recipient is subject to. Depending on the recipient’s income, the marginal tax rate can range from 10 percent to 37 percent. On the other hand, the person making the spousal support payments can also receive a tax benefit for their payments. The payor of spousal support can generally deduct the payments from their taxable income. However, the amount deducted must be reported to the IRS on an IRS Form. In Washington, spousal support payments are not generally taxable if they are part of a structured settlement agreement. This means that the person who is making the payments is not able to deduct the payments, nor is the recipient required to report the payments as income. In conclusion, spousal support payments are usually taxable when they are received in Washington. The recipient must report the payments as taxable income, while the payor can generally deduct the payments from their taxable income. Structured settlement agreements are an exception to this, since payments in these agreements are generally not taxable.

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Is spousal support taxable when it is received?

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