Child support payments are not tax deductible by the payer and are not taxable income to the recipient. Paying child support does not necessarily entitle you to claim the child as a dependent for tax purposes (a dependency exemption). The Internal Revenue Service (IRS) rules dictate that the parent with whom the child spent the most nights during the tax year has the right to claim the child as a dependent. And if the child spends an equal number of nights with each parent during the tax year, the parent with the higher adjusted gross income (AGI) has the right to claim the child as a dependent. Sometimes the child custody court will order the parents to alternate years of claiming the child as a dependent.

In California, as in all states, child support payments are governed by both state statutes and federal tax law. According to the Internal Revenue Service (IRS), child support payments are neither deductible by the payer nor considered taxable income for the recipient. This means that the parent who pays child support cannot deduct those payments from their taxable income, and the parent who receives child support does not have to report it as income. When it comes to claiming a child as a dependent for tax purposes, the IRS rules state that the custodial parent, defined as the parent with whom the child spent the most nights during the tax year, is typically entitled to the dependency exemption. If the child spends an equal number of nights with each parent, then the parent with the higher adjusted gross income (AGI) is entitled to claim the child. However, the court involved in the child custody case may issue an order allowing parents to alternate the years in which they claim the child as a dependent. It's important to note that for tax years 2018 through 2025, the Tax Cuts and Jobs Act has suspended personal exemptions, so the dependency exemption is not available for those years, although other tax benefits, such as the Child Tax Credit, may still apply.