Child support is not taxable income for the person receiving it, and you cannot deduct it as an expense if you pay it
The federal government treats child support differently from other money that moves between households. If you receive child support, you do not report it as income on your federal tax return. If you pay child support, you do not deduct those payments from your taxable income. This rule applies regardless of whether the support is court-ordered or part of a written agreement.
The distinction matters because it affects your tax liability and the refunds or payments you owe. A parent paying $500 per month in child support cannot reduce their taxable income by $6,000 per year. A parent receiving $500 per month does not add $6,000 to their reported income. This is true even if the payments are made through a wage garnishment or court order.
The rule has been in place since 1984 and applies to all child support arrangements, whether they began before or after that date. It does not matter whether the support is paid in cash, through a state agency, or by wage withholding.
Key Takeaways
- Child support received is not reported as income on your federal tax return, and child support paid is not deductible from your taxable income.
- This rule applies to all child support, including court-ordered support, informal agreements, and payments made through wage withholding.
- Alimony or spousal support follows different tax rules and may be deductible or taxable depending on when the divorce or separation agreement was signed.
- State tax treatment sometimes differs from federal rules, so you should check your state's tax guidance if you live in a state with income tax.
- If you are unsure whether a payment counts as child support or another type of support, the court order or written agreement will specify the purpose.
Why child support has its own tax rule
Congress created the non-taxable treatment of child support to reflect the reality that the money is intended for the child's benefit, not the parent's income. The parent receiving support is using it to pay for housing, food, education, and other costs for the child. Taxing that money would effectively reduce what the child receives.
The paying parent's inability to deduct the payments follows the same logic: child support is a legal obligation to support a dependent, similar to the way you cannot deduct the cost of feeding or housing a child who lives with you. The tax code treats it as a personal obligation rather than a business or investment expense.
The difference between child support and alimony
Alimony, also called spousal support or maintenance, follows completely different tax rules. For agreements signed before January 1, 2019, alimony is taxable income to the person receiving it and deductible by the person paying it. For agreements signed on or after January 1, 2019, alimony is not deductible and not taxable — the same treatment as child support.
The court order or separation agreement will specify whether a payment is child support, alimony, or both. If the order says "child support," the non-taxable rule applies. If it says "alimony" or "spousal support," you need to check the date the agreement was signed to know the tax treatment. Some orders include both types of support, and each is taxed according to its own rules.
If you receive a payment that is not clearly labeled, the IRS looks at whether it is tied to a child's age or status. A payment that ends when the youngest child turns 18 or graduates high school is treated as child support. A payment that continues indefinitely or ends at a different event is more likely to be treated as alimony.
State tax treatment of child support
Most states follow the federal rule: child support is not taxable income and not deductible. However, a few states have their own rules. You should check your state's tax guidance if you live in a state with a state income tax and you receive or pay child support.
Even if your state follows the federal rule, you may need to report the child support on your state return for record-keeping purposes, even though it does not affect your state tax liability. Your state tax form or instructions will tell you whether to report it and where.
What to do if child support is listed on a 1099 form
Occasionally, a paying parent or a state agency mistakenly reports child support on a 1099-MISC or other income form. If you receive child support and it appears on a 1099, you should contact the person or agency that issued the form and ask them to issue a corrected form that removes the child support amount.
If you cannot get a corrected form, you can still file your tax return without reporting the child support as income. Keep a copy of the court order or written agreement showing that the payment is child support, in case the IRS questions your return. The IRS has guidance stating that child support is not taxable, so you have the law on your side even if the 1099 says otherwise.
How child support affects other tax benefits
Child support does not count as income for purposes of determining whether you can claim the Earned Income Tax Credit (EITC) or other income-based tax benefits. Because child support is not reported as income, it does not reduce the amount of EITC you may receive or push you over an income limit for other credits.
Child support also does not affect your ability to claim a child as a dependent. The person who has custody of the child for more than half the year can claim the child as a dependent, regardless of who pays child support. If custody is split equally, the parent with the higher income can claim the child unless the other parent has a signed agreement giving them the right to claim the child.
Frequently Asked Questions
Does child support count as income when I apply for a loan or mortgage?
Lenders have their own rules and do not always follow tax rules. Some lenders count child support as income when you apply for a mortgage or other loan. Others do not. You should ask the lender directly whether they count child support as income for their purposes. If they do, bring documentation showing the amount and that it is regular and likely to continue.
Can I deduct child support if I pay it through a wage garnishment?
No. The method of payment does not change the tax treatment. Whether you pay child support by check, wage withholding, or through a state agency, you cannot deduct it from your taxable income. The fact that it is withheld from your paycheck does not make it deductible.
What if the court order says I have to pay both child support and alimony?
Each type of payment follows its own tax rules. The court order should specify which amount is child support and which is alimony. Child support is not deductible and not taxable. Alimony is deductible and taxable if the agreement was signed before 2019, or not deductible and not taxable if signed in 2019 or later. If the order does not clearly separate the amounts, contact the court or your attorney for clarification.
If I receive child support, do I have to report it to the IRS?
You do not report child support as income on your federal tax return. However, some states ask you to report it on your state return for record-keeping purposes, even though it does not affect your tax liability. Check your state's tax instructions or contact your state tax agency to see whether your state requires you to report it.