Alimony paid to adult children is deductible only when the following 4 conditions are met. The amount deductible is limited to a ceiling.
Alimony paid to adult children is deductible only when the following 4 conditions are met:
- the child is not attached to the tax household of the taxpayer paying the alimony (this rule assessed per year and per child);
- the adult child is not able to provide for his essential needs (this notion, subjective, may be subject to the judge’s assessment).
- the amount of the pension is not disproportionate to the resources of the person paying it;
- the taxpayer must be able to justify the reality of the payments made.
Expenses giving rise to a deduction for alimony relate not only to food and housing but also to all the necessities of life.
It may possibly extend to medical expenses and even to funeral expenses, at least when there are no estate assets to allow the imputation of these expenses.
The amount of the deductible pension is limited to a ceiling per child.
If the adult child lives under the roof of the parent who pays the pension, the expenses for food and accommodation can be assessed on a flat-rate basis.
If he uses this lump sum, the taxpayer can deduct the other expenses for their real amount within the legal limit.
Alimony paid to an adult child is taxable in his hands within the limit of the amount deducted by the debtor parents.
2. Special cases
2.1. Year of majority of the child
The year in which the child reaches the age of 18, it is not possible to benefit from both:
- the tax connection and the advantage in family quotient,
- and the deduction of alimony (for the period after the date of majority of the child).
2.2. Separated or divorced
parents When the child’s parents are separated or divorced, each of them can deduct the expenses incurred for the upkeep of the child within the limit defined above.
Similarly, one of the parents can choose to attach the adult child to his household (provided that the child is effectively attachable) and the other parent can choose to deduct alimony.
2.3. Married, PACS or dependent
child When the child is married, PACSed and subject to joint taxation or dependent on a family, the deduction of alimony is limited for each of the families of the 2 spouses or partners.
If a parent justifies participating alone in the upkeep of the household, the deduction ceiling is doubled in his favour. The deduction limit remains the same whether or not the young household itself has one or more children.