Intuit Academy Tax Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Enhance your tax skills with the Intuit Academy Tax Exam. Access multiple choice quizzes and detailed explanations. Prepare effectively and excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Taxpayer A and B are married and filing jointly with a gross income of $80,000. Are child support payments made by Taxpayer A deductible?

Yes, they can be deducted
No, they cannot be deducted
Yes, if reported correctly
No, only if the children are dependents

The correct answer is: No, they cannot be deducted

Child support payments made by Taxpayer A are not deductible. The tax code specifically states that child support is considered a non-deductible personal expense. This means that the payor cannot deduct child support payments from their taxable income, regardless of their filing status or income level. Additionally, child support does not create a taxable event for the recipient; they do not have to report it as income. This principle aims to ensure that the money designated for the child's support is used for that purpose and is not subject to taxation. Therefore, regardless of the specific circumstances around the payments, the fundamental tax treatment of child support remains the same: it is not deductible for the payer.