For newly divorced parents and those who fall into a high-net-worth category, tax season can be confusing when considering your new marital status and custody arrangements.
Generally, child support payments are not taxable as income for the recipient nor are they tax-deductible for the payer. Importantly, paying child support does not make one eligible for a dependency exemption either.
However, you may be entitled to a dependency exemption and child tax credit when filing your taxes if your family meets the IRS’ prerequisites. The Boyd Collar Nolen Tuggle & Roddenbery team will help you understand the tax rules as they apply to your situation.