Final answer:
Child support payments are not considered taxable income for the recipient and do not contribute to the taxpayer realizing income. Matters of child support are separate from tax credit programs like CTC, EITC, and TANF, which do affect tax revenues.
Step-by-step explanation:
The statement that taxpayer realizes income from the receipt of child support payments made by their former spouse is False. Child support payments are not considered taxable income for the recipient, nor are they tax-deductible for the payer. This is a matter of tax law and is clearly stated in the Internal Revenue Code. Instead, issues related to child support are addressed under family law, and the payments are seen as a parent's obligation towards their child.
Additionally, when discussing government tax cuts for the child tax credit (CTC), earned income tax credits (EITC), and the Temporary Assistance for Needy Families (TANF) program, it's crucial to understand that these are distinct from child support. They provide financial assistance in different forms: the CTC reduces the amount of tax owed by families with dependent children, the EITC provides a refundable tax credit based on income and family size, and TANF provides government-funded financial assistance. All these programs can result in loss of tax revenues or require direct outlays, but they do not alter the non-taxable status of child support.