Is Child Support Considered Taxable Income in New York?

tax return and 1040

If you and your spouse are going through a divorce, you may have many questions regarding what you can expect during these times. One of the most common concerns parents have regarding these matters revolves around child custody and child support. For example, you may wonder what the tax implications of child support or claiming a child as a dependant are. The following blog explores whether or not child support is taxable in New York and why connecting with a Nassau County child support lawyer is in your best interest during these matters.

Is Child Support Taxable?

If you are receiving child support from your child’s other parent in New York, you should know that this is not considered taxable income. As such, you do not have to report these on your state income taxes in New York. Additionally, the paying parent cannot report these as a tax deduction. As such, the recipient parent will not be taxed on the payments they receive and the paying parent will not be able to receive deductions on their taxes. This is because the state believes that the income paid to the child should go exclusively to the child.

What Other Tax Considerations Must Be Made?

In addition to knowing that child support is not taxable income, it’s also important to understand whether or not you can claim the child as a dependant. Generally, the IRS will allow the custodial parent to claim the child. In instances in which you have split custody, the IRS will consider the parent with the higher income as the claimant.

However, you and your spouse may agree to switch who can claim the child annually. Generally, this will allow you to declare that you will not claim the child as a dependant, instead allowing the non-custodial parent to claim the child. This can be written into your divorce decree allowing you and the child’s other parent to switch who claims the child each tax year.

Can an Attorney Help Me With any Concerns I Have?

If you are going through a divorce, it’s critical to connect with an experienced attorney to explore your rights. If you do not include specific terms in your conditions, you may find that the IRS rules will take effect, leaving you vulnerable. As such, you should connect with an attorney as soon as you and your spouse decide to file for divorce.

At Barrows Levy, our team understands how complex these matters can be, which is why we are dedicated to helping you through these matters. Connect with our team today to learn how we can help you navigate the tax implications of child support and custody. Our firm is ready to help you.

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