Contrary to popular belief, child support payments are not tax deductible. FindLaw states that the child support payer is not actually allowed to deduct based on the child support payments and that the child support payee does not need to treat child support payments as taxable income. This is different from alimony; which is spousal support that is tax-deductible for the person who makes the payments and taxable to the recipient.
Child support could however affect a tax return in other ways. For example, a parent may be able to declare that a child is a dependent, which can either be a very simple or very complicated procedure depending on your situation. In general, a parent must provide at least 50 percent of the child's support during the tax year in order to claim a child as a dependent.
With non-married couples, only one parent is able to claim the dependent exemption. The parent who gets the exemption is typically the custodial parent, as the custodial parent is usually the one to provide the majority of the child's support. If the non-custodial parent is the one to pay for more than half of the child's support, then he or she can have the custodial parent sign IRS Form 8332, which relinquishes the custodial parent's right to claim the dependent exemption. The noncustodial parent must then attach the signed form to his or her tax return.
If neither parent provides more than half of the child's support for the year, then there are even more complications that could arise when it comes to determining which parent gets the exemption. See IRS Publication 504 for information on how to handle this type of situation. If you have any specific legal questions about child support, it may be wise to consult a Houston family law attorney.
Related Resources:
-
Child Support and Taxes Q&A (FindLaw)
-
3 Tips When Using A Child Support Calculator (FindLaw's Law and Daily Life blog)
-
Contact a Houston Family Law Attorney (FindLaw)
ShareThis
