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Tax Deduction Consulting: Child Support Westbrook ME

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.

Pamela S. Holmes
(207) 646-1068
PO Box 1647
Wells, ME
Specialties
Family, Criminal Defense, Divorce, Child Support, Litigation
Education
University of Maine School of Law,University of Hartford
State Licensing
Maine

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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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