As an experienced family law attorney practicing in Michigan, I often receive questions about the tax implications of child support.
With tax laws evolving over time, parents on both sides of a support arrangement (the paying parent and the receiving parent) understandably wonder if child support will be taxable income—especially as we look ahead to 2025.
Let’s set the record straight: child support is not taxable income under current federal law, and there are no indications this will change in 2025. Below, I’ll walk through the reasons behind this rule and provide some tips for parents navigating child support orders.
All About Child Support
Purpose of Child Support
Child support is meant to ensure that a child’s financial needs—such as food, shelter, clothing, medical expenses, and education—are met by both parents, regardless of whether they are married, divorced, or separated. The underlying principle is that parents have a legal and moral duty to support their children.
Child Support under Michigan Law
In Michigan, the amount of support owed is typically determined using the Michigan Child Support Formula (MCSF). This formula takes into account the income of both parents, the number of overnights each parent has with the child, and various child-related expenses such as childcare and health insurance. Courts in Michigan must follow this formula unless there are reasons to deviate from it.
Why Child Support Is Not Taxable
Federal Tax Treatment of Child Support
Under federal tax law, child support payments are not considered taxable income to the recipient. This means if you receive child support, you do not include those amounts as part of your gross income for federal income tax purposes.
No Tax Deduction for the Payer
Likewise, the parent who pays child support does not get to deduct these payments from their taxable income. Although it can feel counterintuitive—since other types of payments might be deductible—the IRS has consistently treated child support differently.
No Planned Changes to Tax Status of Child Support in 2025
Even though there have been changes to various tax laws in recent years, there is currently no proposal at the federal level indicating that child support payments will become taxable income in 2025. Unless and until Congress passes legislation changing the status of child support for tax purposes, the current rules remain in effect.
Common Confusion: Spousal Support vs. Child Support
There is some confusion about spousal support and child support, and much of this comes from the fact that both are court ordered payments that are remitted to the ex-spouse or other parent. However, these two different types of support are treated very differently.
Spousal Support (Alimony):
Alimony, also known as spousal support, may be treated differently from child support for tax purposes—especially for older divorce decrees finalized before 2019. Under the Tax Cuts and Jobs Act of 2017 (TCJA), alimony payments finalized after January 1, 2019, are no longer deductible for the payer nor taxable to the recipient. But for pre-2019 agreements, the old rules still apply, so it’s important to check with a tax professional or attorney about your specific situation.
Child Support:
Regardless of when a child support order was established, child support has never been taxable income and is not tax-deductible for the payer.
How To Manage Child Support & Taxes
Keep Accurate Records
It’s wise to document all child support payments—both those made and those received. This helps avoid confusion and disputes over arrears or missed payments.
Use Proper Forms
If you’re the paying parent, you’ll generally not list child support on your tax return. If you’re the receiving parent, you do not report child support as income on your tax forms. Always consult with a CPA or tax advisor if you have any doubts about which line items to fill out or omit.
Review Your Parenting Time and Income Regularly
If circumstances change—such as a new job, significant income change, or adjustment in your parenting schedule—you may need to revisit your child support order. Michigan courts allow parents to file a motion to modify child support when there’s been a significant change in circumstances.
As of now—and looking ahead to 2025—child support remains non-taxable income for the receiving parent and non-deductible for the paying parent. No federal legislation has been passed or proposed that would alter this treatment. However, as we’ve seen with tax reform in recent years, laws can change quickly. If you have concerns or questions about your specific situation, or if you anticipate a major life change that could affect your support obligations, it’s best to consult a qualified family law attorney and a tax professional.