or Connect
Mothering › Mothering Forums › Mom › Parenting › Single Parenting › Child support as "income"?
New Posts  All Forums:Forum Nav:

Child support as "income"?

post #1 of 18
Thread Starter 
I feel like I asked this a long time ago, but I'm senile so I'll ask again:

Once child support is in writing...it isn't court-ordered, but was agreed upon for our divorce, and a judge will sign our papers soon....is that considered part of my income? As in: Someday I'd like to buy a house...can I count the child support as part of my income? It certainly would make a huge difference.
post #2 of 18
Yes, i believe it is considered income.
post #3 of 18
It is up to you if you'd like it to be considered income- at least on all of the credit applications I've filled out. I've never applied for a mortgage so I couldn't speak to that...
post #4 of 18
YES, child support is considered income in terms of a mortgage.
post #5 of 18
Sometimes even child support I haven't received is a counted as income. :
post #6 of 18
It is not taxable though is it? My understanding is that child support is not taxable but alimony is.
post #7 of 18
Child support is not taxable income for the IRS, but is counted as income in terms of mortgages and assistance (food stamps, etc).
post #8 of 18
Out of curiosity, what about the flip side?

Like if I were to apply for assistance (being the father) would I still have to count my child support payments as income?
post #9 of 18
From the assistance forms I've seen, they take into account child support being paid out of the household applying for assistance.
post #10 of 18
Yep, you can choose to include it in your "income" for the mortgage application (and if you were paying CS, would have it deducted, usually), but you might be asked to prove that you actually recieve it before the bank will let you claim it on your application.

I was going to use our old CS agreement for a mortgage app last year, but the bank wanted to see copies of my bank statements to prove that I was actually getting the money, so I couldn't do it. (I stopped asking for cs years ago, but still have all the old paperwork)

As for getting aid (even financial aid for school), they usually ask about it, but if you aren't actually getting it, often you don't have to report it. My school fin-aid doesn't consider CS in the calculation because I don't actually get it, etc. I think food stamps and such work the same way - the flip side is that you have to tell them every time you end up getting money from the ex and that can make your benefits fluctuate.
post #11 of 18
Like if I were to apply for assistance (being the father) would I still have to count my child support payments as income?

Yep. CS paid out is not taken into account as a liability/expense. Ever. You receive that money, you have that money, is the idea. It's kind of bizarre.

ep, you can choose to include it in your "income" for the mortgage application (and if you were paying CS, would have it deducted, usually),

Sorry, but no it isn't. You cannot deduct child support from reported income on your taxes, mortgage apps, etc., it's a federal law.

there are a very few exceptions that are complicated, having to do with super-low income and special circumstances, but in the vast majority of cases the payer of CS is not allowed to consider CS as a financial obligation on applications the way they would, say, an outstanding car loan.

Receivers of CS can claim or not, as they choose.
post #12 of 18
Quote:
Originally Posted by MamaNosBest View Post
Like if I were to apply for assistance (being the father) would I still have to count my child support payments as income?

Yep. CS paid out is not taken into account as a liability/expense. Ever. You receive that money, you have that money, is the idea. It's kind of bizarre.

ep, you can choose to include it in your "income" for the mortgage application (and if you were paying CS, would have it deducted, usually),

Sorry, but no it isn't. You cannot deduct child support from reported income on your taxes, mortgage apps, etc., it's a federal law.

there are a very few exceptions that are complicated, having to do with super-low income and special circumstances, but in the vast majority of cases the payer of CS is not allowed to consider CS as a financial obligation on applications the way they would, say, an outstanding car loan.

Receivers of CS can claim or not, as they choose.

On a mortgage application, there is a section where the borrower is asked if they owe child support and/or alimony. It is counted as a debt against the borrower.

If a borrower chooses to use child support as income, it (ususally) is verified via cancelled checks and/or direct deposit statements.
post #13 of 18
ACK! I said exactly opposite of what I meant to!

Yes, you are correct: CS is counted against the payer for loan apps and against the payer for the IRS, which means not as income for loan apps and AS income for IRS/tax purposes.

Too early in the day for me!
post #14 of 18
Yes, child support is income. As a matter of fact, that's my only income, lol.
post #15 of 18
The IRS doesn't consider it taxable income.

Direct from the IRS website:

If you pay child support, are you allowed to deduct anything on your taxes or claim the child as an exemption?

Nothing can be deducted for the child support payments. Child support payments are neither deductible by the payer nor taxable income to the payee.


IOW, the payer pays taxes on the CS he/she pays just as if he/she had the money available for use, the payee does not pay taxes on the money at all.
post #16 of 18
I just completed my mortgage application last week. Yes, they count child support as income. Yes, I had to provide a copy of the divorce decree and bank statements showing he actually paid.

No, the IRS doesn't tax you on received child support, only on spousal support or alimony.
post #17 of 18
Quote:
Originally Posted by MamaNosBest View Post
Yes, you are correct: CS is counted against the payer for loan apps and against the payer for the IRS, which means not as income for loan apps and AS income for IRS/tax purposes.
That's what I was trying to say

You have to remember that there's a huge difference between "taxable income" and "disposable income" - the IRS cares only about "taxable income" - which never includes cs - it's not a deduction for the payer nor income for the receiver. It's off the IRS/tax radar completely.

Banks really only care about "disposable income" - what's left after you pay all your other bills - so CS counts as income for the receiver and an expense for the payer.
post #18 of 18
In Canada it is not considered taxable income, but you can claim it as income for morgatges, loans etc.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Single Parenting
Mothering › Mothering Forums › Mom › Parenting › Single Parenting › Child support as "income"?