2018 Tax Return : Box VIII – Maintenance Paid and Losses from Previous Years

Losses

If you have made losses on past years, i.e. you had more expenses than income, you can carry forward these losses to later years and deduct them here.

Maintenance paid

If you pay alimony and/or child support to your ex, you can deduct 80% from your income.

Maintenance paid can be deducted up to 80% if

  • you have a legal obligation under the civil code (or an analogous rule abroad) or under a court order to pay maintenance to an ex, (grand)children, (grand)parents, parents-in-law or children-in-law;
  • the beneficiary is destitute;
  • they don’t live with you;
  • you pay regularly and the sums aren’t excessive.

You need to identify the person who receives the maintenance on p. 3 of your paper tax return. The tax authorities have warned they are going to pay particular attention to payments made to beneficiaries in other countries.

Some planning opportunities

When one parent pays maintenance, she can take an 80% deduction for her payments if the children are domiciled with the other parent. However, she gets no allowance for dependents; the other parent will be entitled to the full allowance. They both pay less taxes, €100 paid in maintenance gives a tax reduction of about €40.

Eighty percent of all alimony payments made in respect of any support obligation under the Civil or Judicial Code is deductible. Such support obligation exists, for example, for children, parents, grandparents, spouse or ex-spouse.

For alimony payments to be deductible, the following conditions must be met (article 104(1) of the ITC):

  • the person to whom one is paying the alimony must be entitled to support pursuant to the provisions of the Civil or Judicial Code;
  • the payee must be destitute;
  • the payee must live at another location than the taxpayer making the payments; and
  • the sums paid must not be excessive.

 

Your Tax Return :

Author: Marc Quaghebeur

Marc Quaghebeur is a Belgian tax lawyer with Cabinet DAVID specialising in international tax issues and cross border estate planning. He is a member of the Brussels Bar and the Society of Trust and Estate Practitioners. He

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