If you're divorced, you've probably already come across alimony/spousal support. It's the contribution you potentially have to pay to your former partner if you don't live together anymore. But not everyone knows that you can actually get a deduction for the alimony you pay.
Together with the child benefit deduction, it is one of the payments that you have to keep track of yourself in relation to deductions. There may be cases where it is automatically reported for you. So exactly when you get deductions, we'll guide you through this article.
In this article, we will cover:
What the deduction for alimony is
Other conditions you will need to be aware of
Whether you are eligible to receive any deductions
What is the alimony deduction?
When you move away from your partner and get divorced, you can agree that one of you will pay a contribution to the other as a form of support. It is a monthly payment which you either determine yourself or get determined for your by, for example, the 'Family Court House' (Danish: 'Familieretshuset'), formerly known as the State Administration (Danish: 'Statsforvaltningen').
You can choose whether you pay the contribution yourself directly, or whether you make the payment through Udbetaling Denmark. If you pay directly yourself, you have to report the deduction to SKAT yourself. While if you pay through Udbetaling Denmark, you automatically get the deduction. However, it should be noted that if any contributions have been paid outside of Udbetaling Denmark, then you must report them yourself.
The deduction amount is the contributions you have paid. If you have made any payments outside of Udbetaling Danmark, these contributions must be added to the automatically reported deductions.
In both scenarios there are several essential elements to be aware of that we will go through below.
What else do you need to be aware of?
There are several other elements to be aware of with this deduction:
You can't still live with your former partner
You must have a written agreement - either done by yourself or through the 'Family Court House' (Danish: 'Familieretshuset')
You must use your former partner's Social Security number (CPR) or address and name, if the partner does not have a Social Security number, when reporting the deduction
Check to see if you are eligible for any deductions
The deduction for alimony is a hidden bonus that people don't know that they can get.
That's why we in Tax Helper have created an easy and intuitive platform where you can easily see if you can get the deduction and get all the way across the finish line of reporting your deduction to SKAT. It is free to try out, and you only pay if you get a tax refund.