Tax Implications for Child Support Payments in Massachusetts

Explaining What to Expect Concerning Your Taxes & Child Support Payments to Clients In Massachusetts, Plymouth, Middlesex, Hampshire, Franklin, Framingham, Suffolk, Essex, Barnstable, Nantucket, Dukes, Bristol, Hampden and Norfolk County

Massachusetts state law protects a child’s rights to financial support from both parents. The state calculates child support payments based on financial guidelines that consider a number of factors, such as each parent’s income before taxes, how much is paid for health insurance, and how much is paid for daycare, among a few other things. We are often asked how child support is taxed. Accordingly, a local attorney from O’Connor Family Law can help you understand the tax implications of making or receiving child support payments in Massachusetts.

Because our team has over 35 combined years of exclusive family law experience, we can address questions about how the support you provide to your children could play out in your taxes and income calculations. We can also discuss whether you could recover overdue support owed to you from the other parent’s state or federal tax refund.

For detailed information regarding your unique situation, call us at 774-703-3755 or complete our online form today.

Excluding Child Support as Income on State & Federal Tax Returns

When calculating a parent’s support obligations, the state has created “Child Support Guidelines” that looks at a number of issues that arise when financially caring for a child and has provided guidance for the Court to follow when determining an appropriate child support order.

Some of the basic needs that are often believed to be covered within the child support calculation are:

  • Childcare, babysitting, or daycare
  • Food
  • Clothing
  • Housing
  • Transportation
  • Medical, dental, and vision insurance

Because child support takes into consideration the amount of financial support that should be contributed to a child’s care in addition to the amount of child support that parent receives, the child support order is not meant to cover all of the child’s expenses in and of itself. Child support also does not count as taxable income on a state or federal level. The amount of child support can, however, effect how the state considers a parent’s income when determining whether that parent should receive any financial help for any reason. Parents should consult with a local attorney about the tax implications of child support and how it may impact an individual’s taxable income on other levels outside of just taxes.