Child Support Tax Equity Act of 1992

Child Support Tax Equity Act of 1992 - Declares that nothing in this Act should be construed to affect the right of an individual or State to receive child support payments or the obligation of an individual to pay child support.

Amends the Internal Revenue Code to allow a nonbusiness bad debt deduction for unpaid child support payments. Limits such deduction to $10,000 per child. Allows such deduction to taxpayers whose gross income does not exceed $40,000 and who are owed payments of at least $500. Requires payments to be delinquent during the entire taxable year. Provides a cost-of-living adjustment for amounts under this Act. Requires subsequent payments to be included in the gross income of the recipient.

Requires any taxable unpaid child support payments of a taxpayer to be treated as amounts includible in gross income by reason of the discharge of indebtedness of the taxpayer. Allows a deduction for subsequently made payments.