Q: If you pay child support, are you allowed to deduct anything on your taxes or claim the child as an exemption?

A: Nothing can be deducted for the child support payments. Child support payments are neither deductible by the payer nor taxable income to the payee. You may be able to claim the child as a dependent. Generally, the custodial parent generally is treated as the parent who provided more than half of the child's support. This parent is usually allowed to claim the exemption for the child if the other exemption tests are met. However, the noncustodial parent may be treated as the parent who provided more than half of the child's support if the custodial parent signs a Form 8332 (PDF), Release of Claim to Exemption for Child of Divorced of Separated Parents, or a substantially similar statement.

Q: Are child support payments considered taxable income?

A: No. Child support payments are neither deductible by the payor nor taxable to the payee. When you total your gross income to see if you are required to file a tax return, do not include child support payments received.

Q: Is child support considered income when calculating the Earned Income Credit?

A: No, for purposes of calculating the Earned Income Credit, child support is not considered earned income.