Can a parent receive a deduction for child support payments?

In North Carolina, a parent may be eligible to receive a deduction for child support payments under certain circumstances. Generally, such deductions may be available to those who pay court-ordered child support or who make voluntary payments to the other parent. Deductions for child support payments can be claimed on federal and state income tax returns. The deduction may be taken by the parent who is paying the child support, not the parent who is receiving the payments. The parent must provide the Internal Revenue Service (IRS) or the North Carolina Department of Revenue (NCDOR) with the Social Security number of the dependent child for whom the payments are being made. In North Carolina, the Child Support Guidelines provide for a tax credit for those making child support payments. This credit is taken from the amendment to the North Carolina Child Support Guidelines and allows a non-custodial parent to claim a tax credit equal to 50% of the amount of child support paid currently up to a maximum of $150 per child per year. In general, deductions for child support payments are only available for those who are paying court-ordered child support or making voluntary payments. It is important to keep track of all payments and documentation of all payments made, including payments to the child’s other parent, and to consult with a tax advisor regarding the best approach for deducting child support payments on an income tax return.

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Can a parent receive a deduction for child support payments?

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