NC child support is not taxable as income to the recipient parent and is not a tax deduction to the payor parent. This applies whether it is paid as temporary child support or is the result of a final hearing on child support. Similarly, a parent receiving child support does not have to claim it as income.
Generally, you are allowed to claim one exemption for each person you claim as a dependent. The basic rule is for divorced or separated parents is that the parent who has custody of a child for more than half of the tax year is the parent who provides more than half of the child’s support and is thus entitled to the exemption for the child.
There are exceptions: First, if the custodial parent signs a statement or declaration that he or she will not claim the exemption for the child, and the non-custodial parent attaches this declaration form to his or her tax return filing. Second, if the custodial parent signs a decree or agreement that states he or she will not claim the exemption for the child. Third, there is a court order from a state judge that entitles a parent to claim an exemption.
In some situations, you may also be able to claim a credit for certain kinds of child care expenses. Generally. in order to qualify, you must pay these expenses so that you can work or look for work. Furthermore,, to be a qualifying person for the child care tax credit, your child must be a dependent for whom you can claim an exemption. If you are divorced or separated there is a possible exception to this rule may apply: if you are the custodial parent, you can treat your child as a qualifying person even if you are unable to claim the exemption. If, however, you are the non-custodial parent of the child, you cannot treat your child as a qualifying person, regardless of whether you can claim the child’s exemption or not.
To recap, the IRS puts it this way:
“Question: Are child support payments deductible by the payer or can the payer claim an exemption for the child?
Child support payments are not deductible by the payer.
- Child support payments are neither deductible by the payer nor taxable income to the payee.
- The payer of child support may be able to claim the child as a dependent.
- The parent with whom the child lived for the greater part of the year is the custodial parent for income tax purposes.
- Generally, the child is the qualifying child of the custodial parent, and the custodial parent is allowed an exemption for the child if the other dependency tests are met.
- The noncustodial parent may claim an exemption for the child if the custodial parent signs a Form 8332 (PDF),Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or a substantially similar statement, and the noncustodial parent attaches it to his or her return.”
Scott Allen is a divorce attorney in Raleigh, NC with over twenty-three years of experience in all areas of family law litigation and settlement. He can be reached at 919.863.4183.
"Scott was wonderful throughout the long process and it was clear to me that Scott was knowledgeable of case-law and the Wake County Court system, as well as being especially strong in court. His representation resulted in additional parenting time following the temporary custody trial and since the case proceeded to a full trial, I was ultimately awarded the custody arrangement I was seeking. My daughters reside in Wake County and now if my ex-wife chooses to relocate, I’ll have full legal custody of the girls. Throughout the process, Scott was responsive, provided extremely helpful advice, and genuinely cared about the outcome of my case. I would strongly recommended Scott’s representation for custody matters."
I was out of options and Scott was there to help. I have spoken to or met many attorney's in Wake County and Scott was the only one that REALLY actually cared about my situation. It sounds cliche' but it's not. I could clearly tell that Scott had given a lot of thought to my case. Scott has extensive knowledge of the law. That knowledge coupled with his cerebral approach and courtroom presence were a savior. - Ken
"Scott Allen and his team were sensational during my divorce proceedings. They kept me well-informed of the procedures, requirements, and options. They took the time to explain to me at every step of the decisions and options as we moved forward in my life. Their support, knowledge and presence were comforting in my time of need and help me get through the ordeal. While no divorce is pleasant outcome they help me secure my life and begin a new chapter with a fresh start. Their extensive knowledge of the law and arbitration and negotiation skills were invaluable in getting a good settlement and resolution. I am very pleased that I selected Scott and his team to represent me. I would emphatically recommend Scott and to anyone who is facing a divorce or possibility of a divorce."
I wanted to go to court and he went with it. During the initial hearing and all the subsequent hearings he fought for my rights and presented my case diligently and proved the claims by the other party to be false. Most of the lawyers, will tell you settle as it saves them and the court time, but it might not be always in your best interest. Scott is not those lawyers, he really cares about his clients and is not afraid to litigate or fight for his client’s right in the court. - Susan
Scott Allen took my divorce case after my first lawyer failed to stand for my rights.Scott took the case and I began to sleep better at night. My marriage ended from abuse so I was very weary. - Felicia