Child support is the practice in which the periodic payment is made by an obligator for the financial support and care of children of a relationship or marriage. The right to child support and the responsibility of parents for it is recognized internationally.
The Child support payments are non-taxable. The person making the child support payment cannot deduct the amount from his/her income. The person receiving the amount cannot show it as an income. Child support can be non-taxable when it is designated in such a way during the final divorce decree as child support. There is one important tax concern though this amount is not taxed.
For some one to claim as an exemption the IRS says that you must provide more than half of that personís total support in a calendar year. The IRS to resolve the dependency question created a special rule and who will get the exemption. To get tax exemption the parent should be one of the following.
As per the rules, the parent that has more than a year of the Childs custody is the custodial parent and that parent is termed as the one who has provided ore than half of the childís support. If your ex spouse pays more towards the expenses of the child, but you spend more time with the child and take majority of the child care, then in this case, you will get the child dependency exemption. You are the custodial parent in this case and can claim the child as your dependent.
The non-custodial parent can also claim for the tax exemption. This can be done only if certain criteriaís are met and both the parents willingly agree for it.
The parents are not allowed by the IRS to split the tax exemption. The child is considered as dependent only for one parent for a tax year. You can negotiate with your ex spouse as to who gets the exemption for the year or a long-term basis. This exemption can be claimed on rotational basis every alternate year. It is best to have a signed final decree in this regard. The statement should be included in the final divorce decree. Both the persons should complete all the necessary forms needed by the IRS at the time of filling taxes.