Sensitive Issue: When you owe the
IRS and owe Child Support, it's a scary issue. You can't go without
paying for your children's needs. But the IRS is breathing down you
neck. So who do you pay first? The answer may surprise you.
The IRS issued a Wage Levy on me. But I
need the income to pay for my Child Support. Will they still continue to
Garnish my wages.
Yes. The IRS will continue to Garnish
your wages. The IRS will leave you enough money to pay for your child
support and your basic needs. So watch out. Don't think you can dodge a
Wage Garnishment just because you owe child support.
Is child support considered earned
income?
No. For purposes of calculating the
earned income credit, the child support you receive is not considered
income.
Are child support payments
considered taxable income?
No. Child support payments are not
considered taxable income. This is because income is used to take care
of your children. So be careful! Don't include child support payments
received when you total your gross income on your tax returns.
If you pay child support, are you
allowed to deduct anything on your taxes or claim the child as an
exemption?
You may be able to claim the child as a
dependent. But nothing can be deducted for the child support payments.
Whoever the child lives with for most of the year is the custodial
parent. If you pay child support, the only way to claim the child as an
exemption, is to have the custodial parent sign Form 8332 G "Release of
Claim to Exemption for Child of Divorced of Separated Parents."
Keeping up: The IRS will not
stop you from making child support payments. But don't think you can
escape your debt easily. If you are having trouble solving your tax
debt, look up possible solutions and handle it quickly! It'll be hard to
get the IRS off your back, but life will be so much easier when child
support is the only big payment you have to worry about.
Now You Have The Smoking Gun...Use
it!