If you have come to a child support agreement with your former spouse, you might still have some questions about the arrangement. One question we hear often from payors and payees alike is “Will this affect my taxes?” Fortunately, there aren’t actually significant tax implications to worry about when it comes to these payments. A Peoria County child support lawyer can tell you more.
Are There Tax Implications For Paying Parents?
Not really. If you are the parent paying child support, there are not any tax implications to think about. This is not a payment that you can write off. If you make $5,000 per month and pay $1,000 in child support, your income is still $5,000 per month. That money you pay in child support is not deducted from your taxable income.
What About Tax Implications and Costs For Supported Parents?
At the same time, parents who get paid child support do not have tax implications to worry about. Some parents worry that this will count as income. Will they have to pay extra money to the IRS at the end of the year? Do they have to worry about penalties?
They do not. This is because child support is not income. It’s meant to provide for the needs of your children. It’s supposed to pay for school supplies, food, clothing, and anything else your kids need. It is not taxable income and the IRS or state treasury is not going to come around looking for their cut of it.
How Long Do Child Support Arrangements Last in Illinois?
Child support arrangements last until a child turns 18, but they can last until a child reaches the age of 19 if they are still in high school. If the child goes to college, one parent can ask the other to contribute a reasonable amount to schooling expenses as long as the child is enrolled full-time and in good standing. They also have to make efforts to apply for financial aid or work so that they can pay some bills themselves.
If one of your children is disabled, a child support agreement can end but there will still be a need to support that child financially. You and your former spouse should try to work out an arrangement yourself. If you do not, the courts can order both of you to pay to support your adult child.
Talk to Our Family Lawyers
If you need help negotiating your divorce agreement, our seasoned attorneys are ready to fight for you. Contact Butler, Giraudo & Meister, P.C. to schedule a consultation with our team and learn more about what we can do to fight for a fair deal for you and your children.
