Arons & Solomon Divorce Lawyers | May 14, 2025 | Our Family Law Blog
Spouses filing for divorce must make numerous decisions about custody and child support when children are involved. These decisions have an impact on both of your lives moving forward and can also have implications for your taxes. When finalizing your divorce, custody, and child support arrangements in Bergen County, NJ, legal counsel can help you make the necessary preparations.
Impact of Child Support on Taxable Income
Child support has no direct impact on your taxes, according to the New Jersey Tax Guide. For parents who receive child support payments, these payments are not considered taxable income.
Parents paying child support may not deduct any part of their payments from their taxes. However, this does not mean that you are free from all tax implications. From how child support is determined to filing your annual taxes, the two are intertwined.
Claiming Dependents on your Taxes
Divorced couples have the option to alternate each year on who may claim the child as a dependent on their taxes. This allows parents to take turns claiming the child and dependent care credit to offset the costs of raising a child.
To qualify for the credit, a child must be under the age of 13 and have lived with the parent for 6 months or more out of the year. The parent claiming the child as a dependent on their taxes must also have an income of $150,000 or less.
How Child Support Is Determined
When determining the amount of child support that must be paid, each parent’s taxable income is evaluated to assess how much each parent needs to contribute toward their child’s care and living expenses. The goal is to ensure that financial responsibility is shared while also preventing undue financial hardship. Since one parent may have primary custody, the non-custodial parent generally provides child support.
Additionally, life changes may occur that alter a parent’s ability to provide for their child and make the required child support payments. In these instances, modifications may be made with the court’s approval if there is a significant increase in income or a need to reduce child support payments after a job loss or other type of income decrease.
Deviations from Common Child Support Determinations
Occasionally, there are situations in which the traditional child support guidelines may not apply. This is typically the case when parents are below the poverty line or have a combined net income of $187,200 or more. Income taxes and health insurance tax advantages for the child may also warrant customized adjustments to child support payments, and may affect taxes as a result.
How Failure to Pay Child Support Can Impact Your Taxes
Both parents are required to maintain financial responsibility for ensuring the welfare and quality of life for their child. However, if the non-custodial parent fails to make child support payments or makes late payments, New Jersey can take a number of steps to ensure child support is paid. According to the New Jersey Department of Human Services, this may include claiming state or federal tax refunds, among other actions.
Legal Support Is Essential for Navigating Child Support and Its Tax Implications
Even though child support is not taxable income, it is important to remain aware of the other ways that it can impact your taxes. To best understand the tax implications for your specific situation, it is essential to seek legal counsel when applying for child support in New Jersey. A lawyer can help ensure you have all of your child support and tax questions answered and help you navigate other aspects of the process.
Contact the Bergen County Family and Divorce Law Firm of Arons & Solomon Divorce Lawyers for more help
Contact the experienced family attorneys at Arons & Solomon Divorce Lawyers today for legal assistance. Visit our law office in Bergen County or give us a call at (201) 487-1199 to schedule a free consultation with our team.
Bergen County Law Office
1 University Plaza Dr #400
Hackensack, NJ 07601, United States