Payments not alimony. Not all payments under a di-vorce or separation instrument are alimony. Alimony does not include:

1) Child support,

2) Noncash property settlements,

3) Payments that are your spouse's part of community income, as explained later under Community Prop-

erty,

4) Use of property, or

5) Payments to keep up the payer's property.

Example. Under your written separation agreement, your spouse lives rent-free in a home you own and you must pay the mortgage, real estate taxes, insurance, repairs, and utilities for the home. Because you own the home and the debts are yours, your payments for the mortgage, real estate taxes, insurance, and repairs are not alimony. Neither is the value of your spouse's use of the home. If they otherwise qualify, you can deduct the pay-ments  for utilities as alimony. Your spouse must report them as income. If you itemize deductions, you can deduct the real estate taxes and, if the home is a qualified home, you can also include the interest on the mortgage in figuring your deductible interest.

Child support. To determine whether a payment is child support, see the separate discussions under Instruments Executed After 1984 or Instruments Executed Before 1985, later.

Example. Your divorce decree calls for you to pay your former spouse $200 a month as child support and $150 a month as alimony. If you pay the full amount of $4,200 during the year, you can deduct $1,800 as alimony and your former spouse must report $1,800 as alimony received. If you pay only $3,600 during the year, $2,400 is child support. You can deduct only $1,200 as alimony and your former spouse must report $1,200 as alimony received.

Payments to a third party. Payments to a third party on behalf of your spouse under the terms of your di-vorce  or separation instrument may be alimony, if they otherwise qualify. These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc.), taxes, tuition, etc. The payments are treated as received by your spouse and then paid to the third party.

Example 1. Under your divorce decree, you must pay your former spouse's medical and dental expenses. If the payments otherwise qualify, you can deduct them as alimony on your return. Your former spouse must report them as alimony received and can include them in figuring deductible medical expenses.

Example 2. Under your separation agreement, you must pay the real estate taxes, mortgage payments, and insurance premiums on a home owned by your spouse. If they otherwise qualify, you can deduct the payments as alimony on your return, and your spouse must report them as alimony received. If itemizing de-ductions,  your spouse can deduct the real estate taxes and, if the home is a qualified home, also include the interest on the mortgage in figuring deductible interest.

Life insurance premiums. Premiums you must pay under your divorce or separation instrument for insur-ance  on your life qualify as alimony to the extent your spouse owns the policy.

Use the table below to find how much of your payment is alimony and how much may qualify as an

itemized deduction.

If you must pay all of

the...

And your home is... Then you can deduct and your spouse (or former spouse) must include as alimony...

And you can deduct as

an itemized deduction...

Mortgage payments

(principal and interest)

Real estate taxes and

home insurance

Jointly-owned

Held as tenants in

common

Held as tenants by the

entirety or in joint

tenancy

One-half of the total

payments

One-half of the total

payments

None of the payments

One-half of the interest as

interest expense (if the

home is a qualified

One-half of the real estate

and none of the

home insurance.

All of the real estate taxes

and none of the home

1

Your spouse (or former spouse) can deduct the other one-half of the interest if the home is

a qualified home.

2