In the absence of a legal separation agreement, how is child support treated for tax purposes?

Child support is treated as not an adjustment to income for tax purposes. This means that the paying parent does not receive a tax deduction for child support payments, and the receiving parent does not have to report child support received as taxable income. This treatment is established by the IRS guidelines, emphasizing that child support obligations are not connected to income tax calculations in the same manner as alimony might be.

The distinction lies in the nature of these payments; child support is meant for the benefit of the child, covering expenses like education, healthcare, and general welfare, rather than being classified as income replacement for the custodial parent. Consequently, it does not impact the tax liabilities of either party in a divorce or separation situation.