Will I Be Taxed on My Child Support?

The short answer is no, there is generally no tax on either child support payments, nor a deduction for the party making the support payments. Child support is not considered income. It is a payment from one parent toward the well-being of their own children. It is the same idea that couples with children who remain together in marriage would not expect one parent to file taxes against or deduct any monies spent in the upbringing of the children of the marriage.

In some isolated instances, where alimony is granted, the parties may agree to increase the alimony payment in return for a decreased child support payment. The results of this are two-fold; first, the party paying the extra alimony will be able to take that amount as a deduction from their taxes. Unfortunately, this also means that the party receiving the increased alimony payment will be expected to include this amount as taxable income on their return.

Additional caution should be exercised in this situation however, as decreasing your child support, and increasing your alimony and income, can eliminate some substantial dependent and child related tax-breaks. A discussion with a tax professional prior to agreeing to this kind of arrangement can eliminate any doubt as to whether it would be a viable choice under your own financial circumstances.
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If you have questions about this posting or are interested in Divorce, Immigration, or Estate Law in RI or MA contact Massachusetts and Rhode Island Divorce Lawyer Rui P. Alves at 401-942-3100 or CONTACT him via email.