Great question, and one that trips up a lot of people. Let’s break it down.
If you’re making child support payments, those payments are not tax-deductible. The IRS considers child support a personal expense. So, even if you pay a significant amount each month, you won’t be able to claim any of it on your tax return.
On the flip side, if you’re receiving child support, that income is not taxable. You do not need to report it on your federal (or state) tax return, and it won’t impact your tax liability. The IRS views child support as a benefit to the child, so it’s excluded from income tax calculations.
It’s also important not to confuse child support with alimony (also known as spousal support). Alimony used to be taxable to the recipient and deductible for the payer, but that changed under the Tax Cuts and Jobs Act (this expires in 2025 and may return again). For divorces finalized after 2018, alimony payments are also no longer deductible or taxable.
Additionally, paying child support does not automatically give you the right to claim the child as a dependent on your tax return. That right typically goes to the custodial parent unless otherwise agreed upon in a legal document, such as a divorce decree or IRS Form 8332.
Have more questions about how family-related payments impact your taxes? Reach out to our team. We’re here to help. Give Abacus a call at (417) 380-5000 or email us at transportation@abacuspro.com.
