Are child support payments deductible by the payer and may the payer claim the child as a dependent?

Child support payments are not deductible by the payer. According to the retrieved information, child support payments are explicitly excluded from being considered alimony and are therefore not deductible by the payer. This is confirmed by multiple excerpts, including those from IRS Publication 504 and the IRS FAQ, which state that child support payments are neither deductible by the payer nor taxable income to the recipient.

Regarding the ability of the payer to claim the child as a dependent, the general rule is that the payer cannot claim the child as a dependent if they are the noncustodial parent. However, there are exceptions to this rule. According to § 152(e) of the Internal Revenue Code, a noncustodial parent may claim the child as a dependent if certain conditions are met:

1. The custodial parent must sign a written declaration (Form 8332) releasing their claim to the exemption for the child, and the noncustodial parent must attach this declaration to their tax return.
2. Alternatively, if there is a pre-1985 divorce or separation instrument that provides the noncustodial parent with the right to claim the child as a dependent and the noncustodial parent provides at least $600 for the child's support during the calendar year, the noncustodial parent may claim the child as a dependent.

In summary:

• Child support payments are not deductible by the payer.
• The payer may claim the child as a dependent only if they meet the specific conditions outlined in § 152(e) of the Internal Revenue Code, such as obtaining a signed release from the custodial parent or having a qualifying pre-1985 instrument.

Sources:
Publication 504 (2023)
Publication 501 (2023)
Rev. Rul. 73-175
§ 152. Dependent defined
Rev. Rul. 71-43
§ 1.152-1. General definition of a dependent.