Is Child Support Taxable?

by James Moore Child Support Consultant

If you receive child support, it's worth noting that it isn't taxable.

You don't have to include the child support money as part of your gross income.

Child support payments have already been taxed from the paying parent.

It's also worth noting that, according to the IRS, child support isn't tax-deductible by the paying parent of the support.

If you're the paying parent, you're taxed for the money used to make child support payments.

You can earn back some of that money at the end of the year by filing your federal income taxes and requesting the Child and Dependent Care Tax Credit.

To benefit from this tax credit, you have to prove that you're the head of household and indicate the child as a dependent on your annual tax return.

If you allow your ex-spouse to claim the children on their annual tax return, giving them a larger deduction makes child support tax-deductible.

It may also reduce your child support obligation as the other parent makes the larger contribution.

If you aren't sure how tax deduction works in child support, we recommend consulting with your child support lawyer.

Summarizing Support for Your Children... Separation is inevitable for some couples.

It's a moral and legal requirement for parents to provide for their children just like they did before.

Involving a child support attorney is important when drafting a child support agreement.

Since situations are different for different parents, we've written many other articles that will dive deeper into each scenario parents may encounter.

If you're facing issues about child custody or child support we can help you avoid them and live your best-divorced life with your kids.