Child support not taxable but reducing my refund?
Everything I find says child support is not taxable. But it asks for it on my State return and then deducts money from my refund when I enter it. Why is that if it is not taxable?
Everything I find says child support is not taxable. But it asks for it on my State return and then deducts money from my refund when I enter it. Why is that if it is not taxable?
Though child support is not taxable in Michigan (same as Federal), it is taken into account as household resources in computing the Homestead Property Tax Credit which is part of your tax return. Thus, child support received reduces your property tax credit. See Michigan forms & instructions at https://www.michigan.gov/documents/taxes/Book_1040_with_forms_744829_7.pdf .
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