Do I have to pay taxes on child support?
When it comes to tax season, people often have all sorts of questions. However, if you recently split up with your spouse, you may have even more uncertainties. For example, you could be wondering if child support payments that you have received are taxable. In Salt Lake City, and every other part of Utah, it is crucial for you to familiarize yourself with all of your post-divorce obligations, which may include understanding how your divorce will affect your tax return.
According to the Internal Revenue Service, you do not count child support payments that you have received as part of your taxable income. In other words, you do not pay taxes on child support payments. Not only are these payments not taxable for the recipient, but those who pay child support are not able to deduct their child support payments either. Having said that, other financial arrangements that arise after a divorce, such as the payment of alimony, may require recipients and payers to include the payments on their tax returns.
If you have yet to file your tax return and are unsure of how a recent divorce may impact your taxes, it is very important to find answers to any questions that still remain. In addition to tax matters, divorce can change life in various ways and lead to financial difficulties if these issues are not handled appropriately.
You should understand that this blog post is being provided for general informational purposes and is not to be seen as any type of substitute for legal advice.