Is Child Support Tax Deductible for the Payor or Taxable for the Recipient?

Is Child Support Tax Deductible for the Payor or Taxable for the Recipient? Child support payments are neither deductible by the obligor nor taxable to the person receiving child support.

An obligor’s child support payments are not taxable, regardless of the amount as they are considered personal expenses; the underlying reasoning is that, if the child was living with the obligor paying child support, that money would go to the cost of care for the child so child support payments paid to the person receiving child support should be used to buy things for the child such as clothes and shoes, etc.  A tax professional may be able to help an obligor claim certain medical expenses if the obligor can show that he or she solely paid for such medical expenses.

In Texas, child support is not considered taxable income for the person who receives child support; the underlying reasoning is that the obligor has already paid income tax on any income earned and child support is considered monies received on behalf of children and therefore not earned income.

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