Child Support & Tax Deductions
When going through a divorce, there are many complex legal issues that can arise. One of the most important of these is how child support and tax deductions intersect. It is important to understand how these two things are related so that you can make informed decisions with the guidance of a Boynton Beach family lawyer.
What is Child Support?
Child support is a payment that is made by a parent or legal guardian to the custodial parent in order to cover the cost of raising a child or children. In Florida, child support is calculated based on a formula that takes into consideration the incomes of both parents as well as other factors such as the number of children, and the cost of any necessary medical expenses. The amount of child support that is ordered is legally binding and cannot be changed without the approval of a court.
What Are Tax Deductions?
Tax deductions are a way to reduce the amount of taxes you owe to the government by reducing your taxable income. The amount of the deduction depends on a variety of factors such as your income level, filing status, and the type of deduction that you are claiming. Common deductions include those mortgage interest, charitable donations, and student loan interest.
How Are Child Support & Tax Deductions Related?
When it comes to child support and tax deductions, the two are closely related. In most cases, the parent paying child support can deduct the amount of the child support payments from their taxable income. This can have a significant impact on the amount of taxes that you owe.
However, it is important to note that there are certain restrictions on claiming child support as a deduction. For example, the custodial parent cannot claim the child support payments as income on their taxes. Additionally, if the parent paying child support is claiming a tax deduction for the payments, the custodial parent must also sign a form stating that they have received the payments and that they are not claiming them as income.
What If I Disagree With the Amount of Child Support?
If you disagree with the amount of child support that has been ordered, you may be able to have it modified by filing an appeal with the court. The court will review the circumstances of your case and make a decision on whether or not to modify the child support order.
It is important to keep in mind that if you are successful in having the child support order modified, you may also have to re-file your taxes in order to reflect the new amount of the child support payments. A Boynton Beach family lawyer can provide you with guidance and assistance throughout the appeal process.
Conclusion
Child support and tax deductions are closely related and understanding the relationship between the two can have a significant impact on your financial situation. It is important to discuss your case with a Boynton Beach family lawyer to ensure that you make informed decisions about your divorce, child support, and taxes.