How Do Child Support and Alimony Affect the Earned Income Tax Credit?

By: AARP Tax-Aide | Source: AARP.org | February 2, 2009

Q: Do I have to include the child support payments and alimony I receive in income when I compute the earned income tax credit?
 
A: Child support payments and alimony are not included as earned income, nor are they considered investment income for purposes of eligibility for the earned income tax credit (EITC). Child support payments are also not included in adjusted gross income (AGI). However, alimony payments are included in AGI and will affect the amount of EITC you receive.
 
These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided.

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