Alimony for young adults and tax regulations

1. Alimony and taxes for minors:

Alimony paid to divorced or separated spouses is tax-deductible. The same applies to maintenance payments for minor children. Recipients of this alimony must pay tax on it as income. Maintenance payments can also be made in the form of benefits in kind, such as the payment of rent or mortgage interest.

2. Change on coming of age:

As soon as a child comes of age and is still in education, the tax rules change:

• The parent who pays the alimony can no longer deduct it from their income.
• The young adult who receives the alimony does not have to pay tax on it.

This is to ensure that the support benefits the young adult in full, as they usually have a low income.

3. Social deductions on reaching the age of majority:

• Child deduction: Parents with underage children can claim a child deduction. If they live separately, the parent with custody or, in the case of joint custody, both parents are entitled to half of this deduction.
• Support deduction: After reaching the age of majority, the paying parent can instead claim a support deduction of a maximum of CHF 6,500 if the child is not fully capable of working and the support is proven.

4. Reporting date principle:

For deductions such as the child deduction, the situation on 31 December of the tax year is decisive. For example, if a child completes their studies before the end of the year, they are no longer entitled to the deduction.

5. Different regulations in the cantons:

While the above regulations apply to direct federal tax, the cantons may have their own requirements for state tax. These should be examined separately.