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What difference does it make which label is used?
There are two major differences.
The first difference is the purpose of the support payment. If the intention is solely to provide for the other spouse, without regard to the support of children, either alimony or spousal support is used.
The other major difference is the Federal Income Tax (and where applicable, state income tax) treatment of the payment. Alimony, family support, separate maintenance payments, and spousal support may be deductible from the income of the spouse making the payment, and taxable income to the supported spouse.
Free Tax Debt Analysis!
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- red herring