Kevin McKidd, aka Dr. Owen Hunt, from “Grey’s Anatomy”, finalized his divorce after 17 years of marriage TMZ reports. McKidd will share custody of his two children with his ex-wife.
This divorce did not come cheap though.
Dr. Hunt agreed to pay a whopping $65,096 a month in spousal support. He will also pay $22,440 a month in child support. I’m in law school, which means I’m not great with math but I think that adds up to $87,536 a MONTH!
That sounds like a lot. I’ve never even seen that much in a year, much less a month. But, I have a feeling he can afford it.
Alimony reduces your taxable income
There’s a silver lining y’all! Alimony reduces your taxable income.
IRS code statute 215 allows paying spouses to deduct the amount paid from their taxable income. That means McKidd’s taxable income will be about $781,000 less next year.
Alimony payments reduce your taxable income because they are “above-the-line” deductions. These types of deductions are special jewels.
The other type of deduction is called a “below-the-line” deduction. Even the IRS says that “above-the-line deductions are better…
McKidd won’t pay taxes on his alimony payments because the IRS taxes the receiving party for the payments. Uncle Sam always gets his due. Never forget that.
It’s not fair for both Kevin McKidd and his ex-wife to pay taxes on the money. Only one party pays. It’s fair for the party that spends the money to pay taxes.
And so she shall.
Kevin McKidd won’t get off so easy with the child support payments
The IRS recognizes zero deductions for child support payments.
None. Zero. Zilch.
The government recognizes child support payments as a pre-existing obligation that doesn’t deserve any special treatment.
The only deduction allowed is the standard dependency deduction. However, McKidd will have to duke it out with his ex-wife to determine which party takes the deduction.