Is child support paid in cash tax-deductible?

A taxpayer had deducted from his income alimony payments that he claimed to have made in cash to his ailing father living in Iran.

Following a tax audit,administration sent him a reassessment proposal he had failed to provide evidence that the payments to his father had actually been made. The tax authorities did not dispute that the payments were made for support purposes or that the taxpayer was obligated to make these payments to his father.

Since it was up to the taxpayer to provide proof of these payments, the taxpayer argued before the Court that:

• It was impossible to make bank transfers to his father in Iran, so handing over cash was the only way to pay the child support.

• He did indeed travel to Iran, as evidenced by a plane ticket.

• Third parties testified that the taxpayer had given cash to his father during trips to Iran.

• The taxpayer’s accountant confirmed that the taxpayer had not deposited the cash reported for tax purposes into his bank account.

The Court will, however, rule that“these documents, given their general or declaratory nature, do not—even though they are consistent with one another—constitute the supporting documentation required to allow for the deduction of the reported pensions.” It finds that the tax assessment against the individual is justified.

Therefore, when paying child support in cash, in order to claim it as a tax deduction, it is always important to have documentation proving that the cash was actually handed over.

CAA Versailles, June 24, 2025, No. 23VE00660

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