Taxes and Child Support

Are you confused about what counts as child support? It is important to understand what is legally considered child support in order to file for taxes and conduct other necessary procedures.

The courts and financial institutions only recognize payments as child support that has been designated as such by a divorce settlement or separation settlement. Even if your former spouse/partner is giving you a lump sum of money each month, for alimony or child support, it will not be recognized as child support.

Even though you may be obtaining the money you need each month, this could be detrimental to your overall finances when you file your taxes. Since family support and alimony is taxable to the recipient, you could be paying more taxes on what is actually child support and not just spousal support. Taking the time to legally separate those two expenses can save you money in the long run.

Have questions pertaining to child support?  Be sure to speak with a family law attorney.