What is incorrect regarding the income tax implications of alimony and child support?

Child support is not considered taxable income for the recipient according to the Internal Revenue Code. This means that the recipient does not include child support payments in their gross income, and consequently, it is not subject to income tax. This understanding is crucial for both parents involved in child support agreements, as it influences their financial planning and overall understanding of tax obligations.

When analyzing tax implications related to alimony, it is important to note that alimony payments can be tax-deductible for the payer if established under qualifying conditions. This aspect distinguishes alimony from child support and emphasizes the varying tax treatments associated with these two types of support.

Additionally, child support payments cannot be deducted by the payer, further clarifying the no-tax impact of such payments. The treatment of property transfers in family law matters, which states that transferring property typically does not create taxable events, also aligns with these principles. Understanding these classifications is key to effective tax planning and financial decisions in the context of family law.