Parents who depend on child support may suffer when unreported income escapes the court’s attention in calculating child support. Fathers who are paid under the table, mothers who receive tips — these are some of the parents who can cheat child support authorities by failing to report all of the income they receive. In court proceedings, there is an investigative […]
Generally, child support is neither taxable nor tax-deductible. Yet, when combined with alimony or spousal support, it can interfere with tax deductions if not properly structured. Chapter 3 of Frumkes & Vertz on Divorce Taxation contains tips and strategies to avoid inadvertent disqualification of the alimony deduction; and Chapter 5 discusses the allocation of child tax credits, dependency exemptions and other valuable child-related credits and deductions.
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