Child Support And Taxes
When parents get divorced, they usually must agree on child support. When one parent pays child support to the other, there are financial implications beyond making sure the kids have their needs met. Whether you are paying support or receiving it, you need to know how child support will affect your income taxes.
At The Day Law Office, we can give you the tax information you need to make smart choices about child support. Our team of attorneys has practiced law in Florida for over 20 years apiece. We will be your trusted resource for family law advice that will save you money in the long run.
How Does Child Support Affect My Income Taxes?
Child support is not taxed in Florida. However, spousal support (also known as alimony) is. To avoid having to pay income taxes on child support, the parent with custody of the children should be careful to have child support and alimony payments handled separately, not in a single payment of “family support.” If you pay or receive both alimony and child support, reducing the level of one payment and raising the other can affect your federal income tax bill. Please note that child support is not tax-deductible.
A bad child support plan could not only increase your tax bill; it can also affect your ability to maintain your household or raise your kids properly. Our attorneys, Sandra Day and David Day, work collaboratively on each case, so you will enjoy the full benefit of both their experiences in the law. We will guide you into a support order closely aligned with your financial reality.