What Are The Tax Consequences of Child Support Payments?By DADvocacy™ | May 13, 2016
Understanding child support is difficult. Once you understand how child support is calculated, you might begin to wonder how child support affects your taxes. There are various parts of divorce that affect income taxes including child support, alimony, and tax credits.
Alimony is a payment to a former partner controlled by court order or separation agreement. While child support is not taxable nor tax deductible, alimony is taxable and tax deductible. Because alimony is taxable, alimony must be included on tax returns as income. Unlike child support, alimony can substantially affect the amount of federal income taxes you must pay. If child support is grouped together with alimony then none of this payment is considered child support for tax purposes.
Contact child support lawyers in Miami at Dadvocacy at (305) 371-7640!