Question:   Are child support payments deductible by the payer or can the payer claim an exemption for the child?

Answer:   Child support payments are not deductible by the payer.

•  Child support payments are neither deductible by the payer nor taxable income to the payee.

The payer of child support may be able to claim the child as a dependent.

•  The parent with whom the child lived for the greater part of the year is the custodial parent. 
•  Generally, the child is the qualifying child of the custodial parent, and the custodial parent is allowed an exemption for the child if the other dependency tests are met.
•  The noncustodial parent  may claim an exemption for the child if the custodial parent signs a Form 8332 (PDF), Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or a substantially similar statement, and the noncustodial parent attaches it to his or her return.