How does a payment qualify as spousal support or alimony?

Just because a payment is called “spousal support” or alimony does not mean that the IRS will view is that way.  The following requirements must be met for a payment to qualify as spousal support. We call them the eight D’s of alimony.

1) Dollars must be received by or on behalf of a spouse

2) Documented by a divorce or separation agreement

3) Designation of payments: cannot opt out of §71 or §215

4) Distance: couple cannot live in the same residence

5) Dependents cannot change alimony

6) Dual returns: separate tax returns must be filed

7) Dumping: front-loaded payments are not allowed and may subject the payor to alimony recapture

8) Death of the recipient must end payments