Can You Claim Child Support on Your Taxes?

Maximizing your tax deductions is an effective way to save money on your tax returns. So, as a parent, you may wonder: Can you claim child support on your taxes?

The answer is usually no. However, child support is also not considered taxable income, meaning the receiving parent shouldn’t need to report it. 

Is Child Support Tax Deductible?

If you pay child support to your child’s custodial parent, you may hope to deduct those payments from your taxable income. However, child support payments are generally not tax deductible. This is because the government wants child support to remain a personal obligation, not something that offers tax benefits. 

These IRS child support rules hold true regardless of the amount of support you pay. Think of it this way: If you lived with the child’s other parent and paid for the child’s expenses the traditional way, you wouldn’t be able to deduct those costs from your taxes, either. 

Is Child Support Taxable Income? 

On the other side of the equation, if you receive child support from your child’s non-custodial parent, do you need to report it as taxable income? The answer is no. This is because child support payments aren’t income; they are simply the funds necessary to support your child’s upbringing. The court assumes you use this money for your child’s expenses, not personal income. 

Generally, court-ordered payments are never considered taxable income. You will not need to factor child support into your total earned income for the year, and it will not affect your eligibility for tax credits.

Other Ways To Reduce Taxes As a Parent

Can you claim child support on your taxes? No, but parents have other opportunities to reduce their tax burdens.

If you are the custodial parent, meaning you have primary custody of your child, you can generally claim your child as a dependent on your tax return. This opens you up to certain tax benefits, such as:

• Earned Income Tax Credit: Gives a tax break to low-to-moderate-income families. Having children might increase the value of the credit. 
• Child Tax Credit: Reduces your taxable income by up to $2,000 per child under age 16
• Child and Dependent Care Credit: Provides a credit for the expenses you paid toward child care while you and/or your spouse worked or actively looked for work
• American Opportunity Tax Credit: Provides a partially refundable tax credit of up to $2,500 to go toward qualifying expenses for students during their first four years of higher education

If you are a non-custodial parent, the child’s other parent can use Form 8332 to give you the right to claim your child as a dependent.

Overall, claiming a child as a dependent can reduce your taxable income and may boost your tax refund. Talk to your tax advisor about how to maximize your deductions with child and family tax credits. 

What If You Accidentally Claimed Child Support Payments on Your Taxes?

If you accidentally claimed child support on your taxes, either as a child support tax deduction or as taxable income, you can correct this error by filing an amendment to your return. 

Form 1040-X, Amended U.S. Individual Income Tax Return, lets you fix this error. You can often submit this form using the same software you originally used to file your taxes. 

Let Levy & Associates Maximize Your Tax Benefits 

While you cannot claim child support on your taxes, you may qualify for other tax benefits because you have a child. Levy & Associates can explain the link between child support and tax returns and help you save money on your taxes in other ways. 

Contact us today at 877-620-6490 or fill out our contact form to request a consultation with our tax professionals.