Navigating child support and its tax implications is a critical concern for families in Atlanta and throughout Georgia. At Hobson & Hobson, P.C., we understand that clarity on these issues is essential for making informed decisions during divorce, custody, and support proceedings. Below, we break down the latest tax rules for child support, dispel common myths, and highlight recent legislative changes affecting Georgia families.
Understanding Child Support and Taxes: The Basics
One of the most frequent questions we hear is: if I pay child support can I claim that on my taxes? The answer, according to both federal and Georgia law, is clear: child support payments are not tax-deductible for the payer and are not considered taxable income for the recipient. This means:
- If you pay child support, you cannot deduct those payments from your federal or Georgia state income taxes.
- If you receive child support, you do not have to report it as income or pay taxes on it.
This rule is consistent nationwide, as outlined by the IRS. The distinction between child support and alimony is crucial — while alimony may have tax implications depending on the date of the divorce agreement, child support is always tax-neutral for both parties.
For more details, see the IRS’s official guidance on child support and taxes: IRS Child Support Information.
Common Questions About Child Support and Taxes
Can you deduct child support from taxes?
No. Child support is not deductible for the person paying it. This is a common misconception, but the IRS is explicit: there is no tax deduction for child support payments.
Is child support taxable to the person receiving it and is it deductible to the one paying it?
No to both. Child support is not taxable to the recipient and not deductible to the payer. This is true for both federal and Georgia state taxes.
Do I have to pay taxes on child support?
No. Recipients do not pay taxes on child support. These payments are considered tax-exempt income.
Do you get a tax break for paying child support?
No. There is no federal or Georgia tax break for paying child support. The only potential tax benefits related to children are through credits and exemptions, not through support payments.
How is child support taxed?
Child support is not taxed — it is neither deductible for the payer nor taxable for the recipient. It is, in effect, tax-exempt.
For more on federal guidelines, visit the IRS Child Support FAQ.
Georgia-Specific Child Support Tax Rules and Recent Updates
Georgia law mirrors federal rules: child support is not deductible for the payer and not taxable for the recipient. However, recent legislative changes are reshaping how support amounts are calculated:
- Increased Presumptive Child Support Amounts: As of July 2024, Georgia has increased the basic presumptive child support amounts for nearly all income levels.
- Mandatory Parenting Time Adjustment: Starting July 2026, the amount of time each parent spends with the child will directly affect the child support calculation. This adjustment will be mandatory, not discretionary.
- Low-Income Adjustment: A graduated mandatory low-income adjustment will be introduced, making the system more equitable for lower-income parents.
For the latest updates, see the Georgia Department of Human Services.
New Georgia Child Tax Credit
While not directly related to child support, Georgia will introduce a new child tax credit in 2025, allowing taxpayers to claim a $250 credit for each child under age six. This credit is a separate tax benefit and does not affect the tax treatment of child support payments.
Learn more about Georgia’s tax credits at the Georgia Department of Revenue.
Common Misconceptions About Child Support and Taxes
Many believe that child support is tax-deductible or taxable, but this is incorrect under both federal and Georgia law. Another frequent misunderstanding involves claiming a child as a dependent for tax purposes. Only one parent can claim the child, typically the custodial parent, unless otherwise specified in the divorce decree.
For an overview of dependent exemptions, see IRS Dependents Guidelines.
Professional Insights: What Georgia Families Should Know
Our attorneys at Hobson & Hobson, P.C. recommend consulting with a tax professional or family law attorney to understand how new Georgia laws may affect your specific situation. The upcoming changes in 2024 and 2026 are designed to make child support calculations more equitable, especially for parents with shared custody or lower incomes.
Key Takeaway: Child support payments are tax-neutral for both payers and recipients in Georgia and across the U.S. Recent Georgia law changes affect how support amounts are calculated, not how they are taxed. For tax benefits, parents should look to child tax credits and dependent exemptions, not child support payments.
Impact on Payers and Recipients
For Payers
- No tax deduction for child support payments.
- May benefit from new child tax credits if eligible, but this is unrelated to child support obligations.
For Recipients
- Do not pay taxes on child support received.
- May also benefit from new state tax credits if they meet eligibility requirements.
Summary Table: Child Support Tax Treatment
| Aspect | Payer | Recipient |
|---|---|---|
| Deductible on taxes? | No | N/A |
| Taxable income? | N/A | No |
| Report on tax return? | No | No |
| Related to child tax credit? | No (separate issue) | No (separate issue) |
Frequently Asked Questions
1. If I pay child support, can I claim that on my taxes?
No. Child support payments are not deductible for the payer under federal or Georgia law.
2. Do I have to pay taxes on child support I receive?
No. Child support is not taxable income for the recipient.
3. Is child support tax exempt?
Yes, in the sense that it is not considered taxable income for the recipient and is not deductible for the payer.
4. Do you get a tax break for paying child support?
No. There is no tax break or deduction for paying child support.
5. How is child support taxed?
Child support is not taxed — it is tax-neutral for both payer and recipient.
6. What if my divorce decree says I can claim my child as a dependent?
Only one parent can claim the child as a dependent per year, usually the custodial parent, unless the decree specifies otherwise.
7. Are there any recent changes in Georgia law affecting child support?
Yes. Georgia has increased presumptive child support amounts (effective July 2024), introduced a mandatory parenting time adjustment (effective July 2026), and will offer a new child tax credit in 2025. These changes affect calculation, not tax treatment.
Why Choose Hobson & Hobson, P.C. for Your Family Law Needs?
With over 30 years of combined experience, our attorneys at Hobson & Hobson, P.C. are uniquely equipped to guide you through the complexities of divorce, child custody, and support. We combine special litigation training, a client-centric approach, and innovative technology to deliver efficient, effective outcomes. Our commitment to protecting your parental rights and finances is unwavering — whether through amicable resolution or aggressive advocacy.
We offer initial consultations at five convenient office locations across Atlanta, Canton, Marietta, Alpharetta, Milton, Roswell, and Duluth. Our ongoing training ensures we stay current with evolving family law, so you can trust us to provide the most up-to-date advice and representation.
For more information or to schedule a consultation, visit Hobson & Hobson, P.C..
References and Further Reading:
- IRS Child Support Information
- Georgia Department of Human Services
- Georgia Department of Revenue
- IRS Dependents Guidelines
- Hobson & Hobson, P.C.
Hobson & Hobson, P.C.: Professional, innovative, and client-focused family law solutions for Georgia families.
Attorney Sarah Hobson at Hobson and Hobson, P.C. are powerful advocates for those who fight for better futures for those going through divorce and custody law matters.
