Is Child Support Taxable in IL?

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If you receive child support payments from your ex, do you have to worry about that support complicating matters come tax time? To give you the short and simple answer, these payments are not taxable. You are not going to owe taxes on your child support payments when you go to file. A Tazewell County child custody lawyer from our firm can tell you more about the relationship between support and taxes and how your children can affect what you owe.

Is a Child Support Payment Taxable Income?

A child support payment does not count as any kind of taxable income. If you make $4,000 in a month and receive $1,000 in support, your income is still just $4,000 as far as the IRS is concerned. So you do not have to worry about putting money aside to pay taxes on your child support when you file, and you don’t have to make an arrangement to pay quarterly taxes or anything like that.

Can I Claim My Kids as Dependents When I Receive Child Support?

Your children can still affect your taxes in other ways. You can claim each child as a dependent on your taxes and that can allow you to claim certain tax credits. This can make a big difference for parents at certain income levels, so it’s wise to consult an accountant and ensure that you are getting all of the credits that you should.

You can claim your kids as dependents even when receiving child support. Either parent can claim the children as dependents, but you cannot both claim the same child. You can alternate who claims the children each year. You can also both claim different children, so if you have a son and a daughter one of you can claim the son as a dependent and the other can claim the daughter. If both parents try to claim both children, that’s going to lead to some issues with the IRS.

Can the Parent Paying Write Off Their Payments?

If you are receiving child support, it’s not considered income. If you are the one making payments, there is not going to be a meaningful effect on your taxes. You cannot write off the payments or take any other actions that would reduce your taxable income due to your child support obligations.

When Do I Need a Lawyer?

Having a lawyer during the child support negotiation process can help. An attorney can also help you if your former spouse does not want to make their payments or if modifications need to be made to your agreement. We’re here to help you fight for the best interests of your children.

Contact Our Legal Team

When you have questions about your child support arrangement, we can answer them. Contact Butler, Giraudo & Meister, P.C. to schedule a consultation with our team. Whether you’re in the middle of negotiating a support agreement or you need help making your ex keep up with payments, we will do everything that we can to assist you.

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