Can a parent receive a deduction for child support payments?

Yes, a parent can receive a deduction for child support payments in the state of Vermont. Under Vermont law, parents who pay court-ordered child support or maintenance payments are eligible for a deduction. Eligibility is based upon whether the parent is legally required to pay child support or maintenance payments and whether the payments are up to date. The parent claiming the deduction must file a copy of the court-order in their income tax return. The deduction is limited to the amount of child support or maintenance payments paid out in the tax year. Any overpayment or any payments made before the related tax year cannot be used as a deduction. The deduction cannot be claimed if the parent is receiving a loan or other form of relief in lieu of child support or maintenance payments. The deduction is taken off the parent’s total taxable income. This reduces the amount of taxes the parent has to pay and results in a larger refund. Vermont law also requires employers to withhold court-ordered child support payments from the parent’s paycheck. The deduction ensures that the parent does not have to pay additional taxes on the amount of child support or maintenance payments withheld.

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