Can a parent receive a deduction for child support payments?
Yes, in California, a parent can receive a deduction for child support payments. This is because child support payments are considered a reimbursement to the receiving parent for the costs associated with raising a child. In order for the parent paying child support to receive a deduction, the payment must be required in a court order. All child support payments will be reported to the IRS, even if they do not qualify for a deduction. The parent who pays child support can deduct the payments from their taxable income, up to the amount of the support ordered, regardless of how many children they are making payments for. A deduction can be taken for all payments made in the year of filing. Child support payments are not considered taxable income for either parent. The paying parent will not have to pay taxes on the payments, nor will the receiving parent have to claim the payments as income. However, if the paying parent pays more than the amount required by the court order, the amount paid over the court-ordered amount will be considered a gift, and subject to the tax rules related to gifts.
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