Alimony payments:

• Usually must be included in the gross income of the recipient
• Can be deducted by the payer (if all requirements are met)
• The divorce agreement may designate alimony as nontaxable and nondeductible

Child support payments:

• Ordinarily considered nontaxable income of the recipient
• Are not deductible by the payer

Dependency exemptions:

• Ordinarily, the custodial parent is entitled to claim the exemption, regardless of who pays child support
• The noncustodial parent can claim the exemption if the custodial parent agrees in writing or it's part of the divorce agreement; IRS Form 8332 should be used by separated or divorced parents and attached to the noncustodial parent's tax return

Medical expenses deduction:

• Custody of the child isn't required
• Claiming the child as a dependent isn't required (although you must be eligible to claim the child as a dependent)
• Medical expenses are only deductible to the extent they exceed 7.5 percent of adjusted gross income on the tax return

Child and dependent care credit:

• Can only be claimed by the custodial parent
• Must be for child-care expenses incurred so you can work
• Can claim, if qualified, even if you're not claiming the child as a dependent

Child (and additional child) tax credit:

• Can claim, if qualified, for a child you claim as a dependent
• Custody of the child isn't required

Education credits (Hope credit, Lifetime Learning credit):

• You must be claiming the child as a dependent
• You must have paid qualified tuition and/or related expenses
• Child must be a qualified post-secondary school student (Hope credit only)