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Tax Deduction Consulting: Child Support Sheridan WY

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.

Jeffers Accounting & Business Services
(307) 672-2721
1335 N Main St
Sheridan, WY
 
Jackson Terry S CPA
(307) 362-5382
748 Pilot Butte Ave
Rock Springs, WY
 
Wca Group Ins
(307) 234-7325
152 N Durbin St
Casper, WY
 
Liberty Tax Service
(307) 234-9705
1875 Cy Ave
Casper, WY
 
Baker Valuation & Accounting Solutions
(307) 635-3450
408 W 23rd St Ste 2
Cheyenne, WY
 
Tax Break
(307) 235-9995
341 E E St Ste 165
Casper, WY
 
Line One Inc
(307) 733-2408
984 W Broadway
Jackson, WY
 
H & R Block
(307) 324-3045
2211 E Cedar St
Rawlins, WY
 
Tax Deductibles
(307) 686-8416
611 S Miller Ave
Gillette, WY
 
Double Diamond Outfitters
(307) 885-0829
571 S Washington St
Afton, WY
 

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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