Tuesday, December 14, 2010

Taxes and Child Custody: Are Child Support Payments Tax Deductible?

Are child support payments tax deductible?

If they are court ordered as child support payments, no, they cannot be tax deductible.  On the flip side, the parent receiving the child support payments cannot claim the money as income, either.  Just as if you lived together, you couldn't claim the money you spend for clothes, food, and toys for your children on your taxes, and child support payments are considered with that same concept in mind.  However, if you package your child support payments to the court system as “family support” or “maintenance,” you can have your child support payments deducted from pre-tax dollars and then could easily claim the payments as a deduction to, in a sense, lower your child support payments.  Find out more on how to set up deductible child support payments here.

For more questions and answers regarding taxes and child custody, click here!

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