Although the company the representative is purporting to be from is ACE Cash Express, Inc., it should be noted that ACE Cash Express, Inc., website: www.acecashexpress.com is licensed with the Department of Financial Institutions.
A: No, child support payments are not considered taxable income, according to the IRS. Child support payments are neither deductible by the payer nor taxable to the payee. So when you calculate your gross income to see if you are required to file a tax return, do not include child support payments received.
For example, suppose two parents have equal incomes of $15,000 per year, for a joint annual income of $30,000. If they have one child, the annual support is $5,377. The parent paying child support would pay half (50%) of the annual support, because that parent earned half of the total income. Half of $5,377 is $2,688.50 per year. The child support owed is then deducted in incremental amounts each payday from the paying parent's paycheck. In this example, if the parent who owes support is paid once each month, one-twelfth of $2,688.50 would be withheld from his or her paycheck, for a total monthly deduction of $224.05.