The State of Alabama has established Child Support Guidelines that are used to compute support obligations. Rule 32 of the Alabama Rules of Judicial Administration is used to establish the guideline amount to be paid for child support. There are a small number of instances where the Courts may deviate from the amount computed by application of Rule 32.
Alabama’s child support guidelines apply for both original and modification proceedings, and in calculations of both temporary and permanent child support awards. Under the guidelines, health insurance coverage should be required for the children if it is available through either spouse’s employment or other group plan if reasonable in cost.
Under appropriate circumstances, child support may be awarded in Alabama beyond the age of majority (19 years old) for college expenses.
Are child support payments tax deductible to the payor and reportable as income to the recipient?
No. Under IRS rules, the recipient does not treat the child support payments as income and hence is not responsible to pay any taxes on the payments. Additionally the payor may not deduct the child support payments from his gross income.
Who claims the child tax exemptions on tax returns?
Under IRS rules, the child tax exemptions belong to the custodial parent unless a written signed release by that parent authorizes the non-custodial parent to claim the child tax exemption.