Tax Rules for Child Support

If you're a parent going through a divorce or separating from your partner, you may have questions about how the IRS handles taxation of child support payments. Or you could have additional tax-related questions if you're already divorced, but you or your ex hasn't been paying child support on time.

What Is Child Support?

All parents, whether married or not, have a legal duty to support their children. When parents are divorced or separated, the court will order one of them—usually the parent who doesn't have the kids most of the time—to pay child support to the custodial parent. The law presumes that custodial parents meet their share of the support obligation by paying directly for their children's daily expenses, such as housing and food.

All U.S. states have guidelines for calculating child support, as well as rules for when judges may allow an amount of support that's higher or lower than the standard calculation.

Is Child Support Taxable Income?

No. The IRS doesn't treat child support as taxable income. So if you receive child support payments, you don't need to include them as income on your federal tax returns.

Is Child Support Tax Deductible?

No. Just as child support payments aren't taxable, they also aren't deductible. So if you're the paying parent, you may not deduct your child support payments from income on your federal tax returns.

However, you might be eligible for other child-related tax benefits if you're allowed to claim your children as dependents. Generally, parents may claim their children as dependents only if the kids live with them for more than half the year. But under special IRS rules for divorced or separated parents, custodial parents may release their right to claim their children as dependents. For instance, they might agree to do this as part of negotiations for an overall divorce settlement agreement. Or when parents have shared custody under their parenting plan, they may agree to trade off years when each of them will claim their kids as dependents.

Is Interest on Late Child Support Taxable?

If your ex hasn't been paying child support on time, most states charge interest on overdue payments (usually called "arrears"). Interest is taxable under IRS rules. (I.R.C. § 61(a)(4) (2024).)

This means if you receive payments for interest on child support arrears, you must report the interest as income on your federal tax return—but not the late child support itself.

When Tax Refunds Can Be Intercepted to Collect Unpaid Child Support

Child support agencies in all U.S. states have several ways to enforce child support orders when parents aren't paying on time (or at all). One of the agencies' important collection tools is the Treasury Offset Program. When payments under a valid child support order are 120 days overdue, the child support agency will report the delinquency to the U.S. Treasury Department. The IRS will then intercept all or part of the delinquent parent's federal tax refund and apply the money to the support arrears.

States that have income tax may also offset refunds for those taxes.

If you're having trouble collecting child support, contact your local child support agency for help.

Help With Child Support and Taxes

If you're still negotiating child support and child custody as part of your divorce, mediation might help. Otherwise, an experienced family law attorney can explain how different custody arrangements will affect child support and taxes—and can help you get the best outcome for you and your children.