Will Child Support Affect My Taxes in NJ?

Will Child Support Affect My Taxes in NJ?

taxable income

Will Child Support Affect My Taxes in NJ?

If you divorce and get custody of your children, your ex will make child support payments. You may be wondering how these work for tax purposes. Are they considered income? Should you be paying taxes on these payments? Our Chatham child support attorneys can answer those kinds of questions for you and help you with any other support-related questions.

Do I Pay Taxes on Child Support Payments?

The short answer is no. You do not have to worry about paying taxes on any child support payments that you receive. You don’t have to make estimated tax payments through the year or worry about getting hit with extra taxes when you file because of these payments from your former spouse.

This is because child support is not meant to be income. It’s supposed to go directly toward supporting the needs of your children. It’s there to pay for things like clothes and food. It helps you pay for living expenses and the roof over your heads. Child support can also help with other things your children need, like fees for extracurricular activities.

Would I Owe Taxes on Extra Money Given to Me By My Spouse?

So you won’t owe money on the child support payments mandated by the court, but what about any extra money that your former spouse gives you? Some couples make arrangements to split big expenses. This can involve a non-custodial parent giving extra money to the custodial parent outside of their current child support agreement.

You would not pay taxes on this either. Whether the money is for braces, summer camp, or any other big expense, the money given to you by your spouse is still not income. You won’t have to worry about paying taxes on it.

I Pay Child Support. Can I Write It Off on My Taxes?

You don’t pay taxes on child support you receive, but can paying child support affect your tax bill? Not really. This is not an expense that can be written off on your taxes. You have an obligation to support your child. Paying X amount in child support does not lower your taxable income by that amount like a writeoff would.

Who Can Claim the Kids As Dependents?

It’s also important to coordinate on who claims the kids as dependents for tax purposes. If both parents try to claim the same dependents, the tax man will eventually catch on and investigate. This can result in one parent being made to pay back the IRS.

Schedule Your Consultation

If you have any questions about your current child support agreement or you are having an issue with your ex making payments, we might be able to help you. Contact Lazor Rantas, PC and schedule a consultation with our team. Tell us what’s going on and we’ll tell you how our seasoned family lawyers can be of assistance.

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