1 Comment
  1. Prashant Thakur says

    In general, child support payments and receipts are not considered for either allowing deduction in case of payer  or considered taxable  in the hands of recepients .In a way , child support transactions- payment and recipts- are  considered “outside” of the tax system for both parties.

    However, the payer of child support , he /she is custodial parent may be able to claim exemption for the  child as a dependent . For this , it requires to be determined whether  you are  the custodial parent of that child for income tax purposes . The basis for that decision is to seeif the  the child lived with you for the greater part of the year .

    Does that mean parent of non-custodial child can’t claim exemption for child?

    Two person can not claim tax exemption for dependent child. Only one parent can claim. General rule allows child exemption to custodial parent , but under exceptional rule, even non custodial parent can claim tax exemption for the child if the special rule for a child of divorced or separated parents (or parents who live apart) applies.

    This requires in part, that the custodial parent sign a Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or a substantially similar statement. The noncustodial parent must attach it to his or her return.

Comments are closed.

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.