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Tax Deduction Consulting: Child Support Burlington IA

The truth is that the IRS is being consistent in this ruling and is not being unfair to the non-custodial parent, at least not deliberately. The principle that guides the idea of deductions of this sort is the idea that what generates a tax break for one entity generates income for another.

T D & T Financial Group
(319) 753-9877
201 Jefferson St Ste 204
Burlington, IA
 
First Rate Accounting Service
(319) 753-2838
218 N 3rd St Ste 615
Burlington, IA
 
H & R Block
(641) 484-5677
110 W 13th St
Tama, IA
 
Winther Stave & Co CPA Llp
(712) 262-3117
1316 18th Ave W
Spencer, IA
 
Wagner Accounting & Tax Service
(563) 556-4508
999 Century Dr Ste 5
Dubuque, IA
 
Fma Meck Accounting Services
(319) 754-6919
213 N 3rd St
Burlington, IA
 
H & R Block
(319) 462-4472
100 E Main St
Anamosa, IA
 
Lincicum Dennis C CPA
(515) 964-2225
114 NW 5th St Ste 202
Ankeny, IA
 
Straight Karen Tax Service
(712) 542-5254
900 E Washington St
Clarinda, IA
 
Gosling and Company PC CPA
(319) 334-6380
215 1st St W
Independence, IA
 

Tax Deduction Consulting: Child Support

Child Support Tax Deduction

The money that you pay for child support can not be used as a tax deduction.

Child Support Tax Deduction

Many non-custodial parents who are paying child support feel that this is just another example of how unfair the divorce and custody laws are structured. They know that the recipient of the child support is not claiming the support as taxable income. So, the custodial parent is getting, in effect, a tax break. It would seem to be fair that they receive a tax break also.

The truth is that the IRS is being consistent in this ruling and is not being unfair to the non-custodial parent, at least not deliberately. The principle that guides the idea of deductions of this sort is the idea that what generates a tax break for one entity generates income for another. It is a question of balance. One tax writer quipped that the formula that you use is "the IRS gives and the IRS takes away." What this means is that when you claim a deduction for something, use a medical payment to a doctor for example, someone else receives income. In this case, the doctor reports income, and you take a deduction.

This line of reasoning does not completely explain the child support tax deduction situation. The idea of generating income for others does not work in every case. There are certain functions that are considered normal and ordinary. Everyone must buy food, and so although the grocery store receives taxable income when you buy a steak, you can not claim it as a deduction for this reason. It is only when the item is something that is not a normal and expected expense that the idea of deducting it from your income comes into play.

In the case of child support, if you were not separated and living with your spouse and children, you would be paying for their clothing and their food. This would be normal and expected and you would not be claiming deductions for the things that you would be paying for their "support." The IRS does not make a dis...

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