The Tax Consequences of a Divorce: Child Support & Child-Related Payments

Overall, the code sections regarding child support are much more simple than those regarding alimony. Like alimony, child support can come in many forms. It can simply be money that is paid to a custodial parent, it can be insurance payments, college expenses, or any other number of payments on behalf or benefitting a child. Unlike alimony, however, child support is not considered income by the Internal Revenue Code (IRC),¹ and it is not deductible by the payor. Some types of child support payments, such as medical expenses, may be deductible under other provisions of the IRC.

As you may know, there are a number of child-related deductions available to those filing federal income taxes. These include the child tax credit, dependency exemptions, and educational credits. These deductions and credits belong to the custodial parent, but a method does exist for transferring these to the non-custodial parent. Medical expense deductions can be claimed by either parent.

While Timothy Evans may not be a tax attorney, he can help you figure out the effects your divorce judgment may have on your taxes and help you structure the best solution for you. Call Timothy Evans at 601-620-4625 or email Timothy Evans here.

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