Search Site
Menu
Navigating Tax Issues Related to Child Support

When it comes to child support payments, there are some key tax issues that both the payer and the recipient need to understand. The Internal Revenue Service (IRS) views this exchange of money differently than most other financial transactions, and you should be sure to carefully consider how you refer to child support in your agreement.

First, child support payments are free of tax for both parties involved in the transaction. However, these the payer cannot deduct them on his or her tax return.

Additionally, it’s important to note that to be legally considered child support, payments must be clearly referred to as “child support” in the agreement or order you’ve established. If, for example, the agreement combines alimony and child support (often referring to it as “family support”), the recipient may have to pay taxes on it.

Claiming dependents on your tax return

Another common issue divorced or separated parents need to address is who will get to claim the kids as dependents on their tax returns. Only one parent can do this for each tax year — and the IRS can be tough on parents if they both try to claim the same dependents in the same year.

One way many divorce or separated parents resolve this challenge is to alternate the years in which they are able to claim their kids as dependents. This is generally the way courts will divide tax dependency exemptions because child support is calculated in such a way that both parties are financially contributing to the upbringing of the children. It is often included in the order that the person paying the child support must be current with their child support payments to claim the tax exemption for their assigned year.

If you have further questions about child support and how it could impact your taxes, contact a knowledgeable Minnesota divorce attorney with Appelhof, Pfeifer & Hart, P.A.

Our Attorneys
Client testimonials
  • "Tori had a thorough understanding of my situation and made excellent recommendations to resolve my concerns. She was persistent on communication and handled everything in a very timely manner. I would definitely hire her again in the future if needed." - M.K.

  • "With Appelhof, Pfeifer & Hart, P.A., it is like having a family physician. They are all knowledgeable, thorough, comforting, and the only call I need to make for all my legal needs for many years to come. No matter what the matter, I totally trust their advice and commitment to me and my family." - J.N.

  • "Mary from APH Law helped me thru a difficult divorce. She and the entire staff was there for me every step of the way helping me on what to do next. They listened to what I wanted and helped me achieve what matter the most to me in the divorce settlement." - Dana C.

  • "I chose APH after my initial consultation with Mary. I felt my best interest would be represented. The entire process went excellent, the attorneys and staff communicated effectively and efficiently with me throughout the process as they needed to. Being new to the legal process and verbiage, they walked me and talked me through the next steps and the jargon, I felt completely comfortable and represented. I hope I never have to use legal services again but if I do I will call Mary at APH Law and know that I will be taken care of." - Jeff M.

  • "Divorce is a time of emotion and stress. Mary Pfeifer , My lawyer was professional and compassionate. She was very informative through the process. Her insight helped me in my decisions. She worked hard to obtain a settlement which was fair to both parties. Though, I hope I won't need her help again. It is reassuring to know a good person that is willing to help." - Rod S.

  • "I first came to Ms. Jacquelyn Lutz of Appelhof, Pfeifer and Hart in October of 2016. It was definitely the worst time in my life and she compassionately spoke with me about my options. Ms. Lutz thoroughly explained the laws, statutes, process and what to expect going forward. What was supposed to be one case, turned into three intricate cases that took a huge toll on me and my family. Ms. Lutz represented me in court on all three cases with a vast knowledge of the laws and how to proceed accordingly. During all three cases she kept me informed, calm, gave me resources to utilize, and (most important) gave me a realistic view of what may come next. Ms. Lutz knew each case required a great deal of knowledge and creative thinking on how to legally proceed forward with each case. My family and friends are forever grateful for the amazing representation by Ms. Lutz. I highly recommend Ms. Lutz for anyone needing or considering superb representation for any kind of family law. " - M.H.

AWARDS & RECOGNITION


superlawyers
Contact us

Quick Contact Form