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 Wisconsin, as in all states, child support payments are not tax deductible for the payer and do not constitute taxable income for the recipient. This aligns with federal tax law, as outlined by the Internal Revenue Service (IRS). When it comes to claiming a child as a dependent for tax purposes, the right typically belongs to the custodial parent, defined as the parent with whom the child lived for the greater number of nights during the year. However, 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) is entitled to the dependency exemption. It is also possible for a family court in Wisconsin to include provisions in a custody order that allow parents to alternate the years in which they claim the child as a dependent. These arrangements must be consistent with IRS regulations, and the non-custodial parent may be required to file IRS Form 8332 or a similar statement if they are to claim the child in a given tax year.