Who pays taxes on child support – the payor parent or the payee parent?
The payor parent may not deduct child support payments, and the payee parent does not include child support payments as income on their taxes. It is common for parties to include in a settlement agreement that the parties will alternate the years in which they claim their child as a dependent on their taxes, so long as the parent paying child support is making timely payments and is current with their obligation. If there is no agreement, and the court order is silent as to the tax dependency exemption, the custodial parent is generally designated by the I.R.S rules as the parent who can claim the exemption. You should consult the I.R.S. or an attorney if you have any question about whether you are entitled to claim your child.
