Which statement about tax deductions is correct?

The statement that spousal support payments are deductible by the payer is correct because under the tax laws in many jurisdictions, spousal support (also known as alimony) is considered a deductible expense for the payer and taxable income for the recipient. This means that the payer can reduce their taxable income by the amount of the spousal support they pay, effectively lowering their overall tax burden. This deduction is intended to provide financial relief to individuals who are supporting their former spouses after a separation or divorce.

When evaluating the other options, capital losses typically can only be deducted against capital gains, not against ordinary income such as employment income. Additionally, child support payments are not tax-deductible for the payer, nor are they considered taxable income for the recipient. This differentiates spousal support from child support in terms of tax treatment. Thus, the only correct option among the statements regarding tax deductions is that spousal support payments are deductible by the payer.