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 Massachusetts, as in all states, child support payments are not tax deductible for the payer and do not constitute taxable income for the recipient, in line with federal tax laws. The IRS determines dependency exemptions based on the child's residency, not on who pays child support. The parent with whom the child resides for the majority of the year is typically entitled to claim the child as a dependent on their tax return. If the child spends an equal amount of time with both parents, the IRS rules state that the parent with the higher adjusted gross income (AGI) may claim the dependency exemption. However, Massachusetts family courts can issue orders that allow parents to alternate the years in which they claim the child as a dependent, which should be reflected in the parents' tax filings. It's important for parents to adhere to the IRS guidelines and any court orders regarding claiming dependents to avoid tax issues.