The tax impact of alimony differs by type. Partner alimony has tax benefits and obligations, while child alimony is tax neutral.
Partner Alimony
| Role | Tax Rule |
|---|---|
| Payer | Deductible as personal deduction |
| Recipient | Taxable as income in box 1 |
Buyout of Partner Alimony
In the case of a one-time buyout of partner alimony, there are two scenarios:
- Periodic payment: Deductible for payer, taxable for recipient
- Asset division: No tax impact
The text in the divorce settlement agreement is decisive for the tax treatment.
Child Alimony
Child alimony has no tax consequences:
- No deduction for the payer
- No tax for the recipient
Financial Impact
Due to the deductibility of partner alimony:
- Payer receives a tax refund
- The net costs are lower than the gross amount
- Recipient receives net less than the gross amount
Net Calculation
| Payer (e.g. 37% rate) | Recipient (e.g. 19% rate) | |
|---|---|---|
| Gross alimony | € 1,000 | € 1,000 |
| Tax impact | - € 370 (refund) | - € 190 (tax) |
| Net result | Costs € 630 | Receives € 810 |
Tax Return
Partner alimony must be reported in the income tax return:
- Payer: under 'maintenance expenses'
- Recipient: under 'received family law benefits'
Should I keep documents?
Yes, keep payment proofs and the settlement agreement at hand. The Tax Authorities may request proof going back up to 5 years.What if I receive alimony via LBIO?
The LBIO provides an annual overview that you can use for your tax return. This shows the received amount.Can I receive tax benefit in advance?
Yes, as a payer you can apply for a provisional refund. This way you receive a portion of the benefit monthly.Contact and Assistance in Westland
For legal questions about alimony, you can go to the Juridisch Loket Westland. For complex cases, a referral to the District Court of The Hague may be necessary.