Child Support and Tax Considerations

Child support is a financial contribution from a non-custodial parent to help cover a child’s living expenses, like food, housing, education, and healthcare. Tax considerations include the fact that child support payments are not tax-deductible for the payer, nor are they considered taxable income for the recipient. However, if you have joint custody, some states allow parents to claim the child as a dependent on their tax returns, which can affect tax benefits. It's essential to understand these aspects when negotiating or paying child support to ensure compliance and optimize financial implications.