A lot of people wonder if child support payments count as part of their income. The answer varies a great deal depending on the context, and it’s important to plan for this if you’re getting a divorce.
For instance, when you’re calculating your federal income tax, child support payments do not count as income, which means you don’t have to pay tax on the payments received.
On the other hand, if you’re buying a house and applying for a mortgage, a bank might consider child support to be income in deciding whether you’re qualified for a loan. Each lender is different, but some consider child support as a financial resource that’s available to you.
The bank might take into account how much child support you receive, how long you’ve been receiving it, and how long you expect to continue receiving it. It might also want to know if there’s a significant chance that your custody arrangements could change in the future.
In most cases, child support counts as income for the federal Supplemental Nutrition Assistance Program (formerly known as food stamps). If child support boosts your income above the maximum amount, you won’t be eligible for assistance. The same is true for many state-administered health insurance programs.
On the other hand, child support apparently does not count as income when determining if you’re eligible for subsidies to buy health insurance under the Affordable Care Act, popularly known as Obamacare.
For assistance in calculating what your child support should be you should enlist the services of an attorney and/or forensic accountant. Visit our sister website at www.dehitched.com for help.