So how exactly does Paying Child Support and Alimony Change Your Taxes

Child, Alimony and Taxes

Recently a new IRS ruled that wife and kids who pay child would potential consider their own children as dependents track of Health Savings Accounts tend to be Medical Savings Accounts. This can be an step in the rrdeal direction!

Traditionally there had been few if any tax benefits from paying. Now, however, the IRS has began to recognize that parents - usually fathers - are definitely more diligent about paying obligations if they'd like to also receive a tax benefit these people do. Under current tax law, alimony is tax decuctible, child is not.

How fair will be? Think about these discover:

1. Child is paid by "non-custodial parents", who can offer no tax exemption or youngsters tax credit benefits due to their own children. They get double hit that they now have the added negotiate paying child they please don't deduct.

2. Meanwhile and another parent gets the extra income from child, but also likewise has taking the tax exemptions and child tax credits for having the children in her home.

3. Usually alimony is only paid by choose a product made lots of money that can afford it - but they also still get a tax deduction. The tax system is regressive in this way as lower income citizens paying child cannot deduct their debts, but higher earners will have a way deduct alimony - and can even use that as a bargaining chip to pay not much child.

To be sure you take full advantage of the deductions that are around for you, use a tax service similar TurboTax Online to calculate and formulate your taxes. Be sure you don't fail to spot any benefits you're qualified to receive receive!

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