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.
Child support guidelines take into account monthly obligations of custodial parents and payments made by non-custodial parents to custodial parents' households. Upon remarriage, this traditional view maintains that the new spouse's income is not included in child support calculations, though there are some exceptions. Some states, such as California, take into account a new spouse's income when making child support payment determinations only in extraordinary cases. Extraordinary cases are defined as unemployment, underemployment, income reduction, and/or other reliance upon a new spouse's income.