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Raising children can be incredibly expensive. However, regardless of their relationship status, both parents are responsible for financially supporting their children. When parents split, child support helps ensure both parents fulfill their financial obligation to their children. Regardless of whether you’ve been ordered to pay or entitled to receive child support, you may be wondering if these payments are considered taxable income. Please continue reading to learn if child support is taxable in New Jersey and why connecting with our trusted Monmouth County Child Support Attorneys is in your best interest.  

Is Paying Child Support Mandatory?

Firstly, child support is a court-ordered payment made by one parent to the other for the benefit of their children. Essentially, this ongoing, periodic payment helps cover the costs of raising a child. Despite no longer living together, separated or divorced parents are still obligated to support their children financially. As such, the non-custodial parent is typically ordered to make child support payments. When parents do not share physical custody equally, or the child lives with one parent more than half of the time, the parent who spends less time will be required to pay child support. Child support is determined on a case-by-case basis. The court will weigh various factors when calculating the amount of child support to ensure a child’s financial well-being. The following include but are not limited to some of the factors the court will take into account to determine a child support order in New Jersey:

  • The age and number of children
  • The custody arrangement
  • The needs of the child
  • The standard of living of each parent
  • Each parent’s financial situation
  • Each parent’s earning capacity
  • Each parent’s fitness

Are Child Support Payments Considered Taxable Income in New Jersey?

If you receive child support payments, it’s essential to understand that these funds are solely for the child’s benefit. Therefore, the state and the Internal Revenue Service (IRS) do not recognize this as a taxable form of income. As such, you are not required to report these payments when filing your taxes. The parent obligated to pay child support cannot deduct the expenses from their income taxes.

This is primarily because the state acknowledges that these payments are intended to meet the child’s needs. This means that parents may use child support payments to pay for groceries, pay off their mortgage, buy fuel for the family vehicle, pay for childcare services, or pay other expenses that ensure the child’s needs are adequately met.

If you have any questions regarding child support, please don’t hesitate to contact the legal team at Paone Zaleski & Muprhy. Our Monmouth County child support attorneys understand how complex these matters can be. Allow our firm to represent your interests effectively.