Why is my child support amount taken from the gross and I pay tax on the lot?

Question

thats $500 income a week to some one tax free plus $200 extra tax to me thats $700 a week for my kids any help would be appreciated

Answer 1

Because child support isn't deductible to the person paying it, or reportable by or taxable to the person receiving it.  You don't get a tax deduction for supporting your kids, whether you and their other parent are together or not.  One or the other parent gets to claim them as a dependent, but by default that goes to the custodial parent unless there is a court order saying otherwise, or the custodial parent voluntarily signs over the exemption to the non custodial parent.

It's that way because that's how the law was written.  At least in the US - if you are in Australia where you posted, and if laws are different there, please ignore my answer.  But it sounds from your question like that's how the law reads wherever you are.

Answer 2

who ever said the tax system was supposed to be fair?

kids growing up without their parents is also not fair...

also be grateful you have kids rather than whinging about the cost (cos all kids are expensive anyway)!

Answer 3

If the kids lived with you, you would have to pay tax on whatever it costs to raise them, so why is it difficult to understand why your child support payment should be taxed? The 'some one' to whom the payment is made is your kids - are you suggesting that they should pay the tax? If they don't pay the tax, and you don't pay the tax, who will pay the tax? The other taxpayers?? Like me?? No way Jose!!

Answer 4

A small number of parents, who are not motivated to meet their child support responsibilities, may structure their personal and financial affairs to avoid or minimise child support. Detecting these cases early helps us to guide these parents towards higher levels of commitment.

Be grateful that you have children at all, sound likes you dont wont to pay for your responsibility

Answer 5

They don't have to explain anything, and asking will just get you labelled "deadbeat". If you don't want to be screwed until your kid finishes university, best move overseas.

It's not about caring for the kids, it's about reducing the amount the Govt. pays in assistance.

My eldest is grown up now but I was paying her about four times the amount left for the kids living with me.

Answer 6

Who do you think should be paying the income tax?    The kids?