Tax Deductions For Children After A Divorce


It is common for child support to be ordered or agreed to when a North Carolina couple with young children decides to end their marriage. Although most income has an effect on someone’s tax situation in one way or another, child support payments do not. This is because child support is not taxable income. A person receiving child support does not have to pay taxes on it, but the person paying it is not able to take advantage of a deduction either.

However, there are still tax implications related to ending a marriage between two parents. Only one person, normally the custodial parent, is able to claim a child as a dependent for tax purposes, regardless of how much support the other parent contributed.

If the parents of a child decide that they want to share or split up the deductions, there are several ways it can be done. Some parents choose to alternate years, and if a couple had more the one child, they may split up the deductions. If the non-custodial parent wants to claim the child as a dependent and the custodial parent agrees, both must agree in writing. In addition, an IRS Form 8332 must be signed by both parents and attached to the non-custodial parent’s return.

Child support can be essential for a single parent attempting to raise children, but it must be equitable for the process to work. If parents aren’t receiving enough child support or are required to pay more than they can afford, they are likely to run into financial problems. There are some situations where a child support order can be changed, and a family law attorney can describe them.