I understand child support is not deductable or taxable. However, it seems that this additional income would be considered earned income. I have not been treated well in this whole process, even if she had no tax liability, I would feel somewhat better if I was allowed an interest deduction.
2007-09-29 22:09:34 · 5 answers · asked by J L 1 in Business & Finance ➔ Taxes ➔ United States
Interest is not earned income under any circumstance.
The interest you paid is not deductible to you or taxable to the recipient as it is considered child support.
2007-09-30 03:43:38 · answer #1 · answered by ninasgramma 7 · 0⤊ 1⤋
From what I understood-- you defaulted in child support so you had pay interest on child support arrears to your x spouse.
1. Any allowable interest deduction can be claimed only if you itemize your deductions.
2. Interest on child support arrears is not an allowable deduction.
3. I think that the interest on child support arrears will not be earned income for your x spouse as it is not alimony. It should be treated as child support.
2007-09-30 03:11:30 · answer #2 · answered by MukatA 6 · 0⤊ 1⤋
Any interest that you pay beyond mortgage, student loan and investment interest is considered "personal interest" and as such not deductible.
2007-09-30 03:17:58 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
its considered your obligation to our kids. The only thing is that your payment is not just base on your salary but hers as well, she has an obligation to work. The court can force her to work and provide as much as possible to support her kids.
2016-05-17 08:03:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋
In your case is is unallowable personal interest.
2007-09-30 01:42:34 · answer #5 · answered by Anonymous · 1⤊ 0⤋