Tax Consequences of Child Support: Child support payments, generally, are not deductible as an itemized deduction on the payor's income tax returns and, likewise, generally are not reported as income on the recipient's income tax return. There is a way around this legal requirement and, in many cases achieve significant tax benefits for most people paying child support.
The income tax dependency exemptions for the children may be awarded to the parent paying child support, and sometimes are divided between the parents. The allocation of the income tax dependency exemption is an element of support over which the judge has discretion. Indeed, courts have gone so far as to declare that a non-custodial parent who exercises substantial visitation is entitled – that's right, entitled – to the dependency exemption on their taxes in at least alternate years. Contact your Lee County Divorce Attorney for further information.
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