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 Maine, as in all states, child support payments are not tax deductible for the payer and do not count as taxable income for the recipient. This aligns with federal tax law. When it comes to claiming a child as a dependent for tax purposes, the IRS rules are that the custodial parent, defined as the parent with whom the child spent the majority of nights during the tax year, is typically entitled to the dependency exemption. If the child spends an equal amount of time with both parents, then the parent with the higher adjusted gross income (AGI) is generally given the right to claim the child as a dependent. However, it is not uncommon for a child custody court to issue an order that allows 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 during this period, although other tax benefits, like the Child Tax Credit, may still apply.