Child Support
A Child Advocacy Company
Bringing Support to Parents
Building Strength to Children
Bringing Support to Parents
Building Strength to Children
HOW IS CHILD SUPPORT DETERMINED
In order for child support to be consistent and predictable, the Federal Government mandates that
child support guidelines be determined by each state. Each state has different guidelines, but here
are some common elements that are used to determine the overall amount of child support a party
has to pay. The best way to determine what your own individual state requires is to contact your
state’s government home page or your BS Kids representative.
INCOME:
Most of the guidelines take into consideration the income of both parties. The percentage of the
couple's combined income that each parent contributes helps determine the amount they are
required to pay in child support. Some states will base their formula on gross income, while others
will use net income.
DEDUCTIONS:
If a parent is already paying child support or alimony from a previous relationship, they will generally
be allowed to deduct that amount from their income. Typically there are two requirements to
qualify for this deduction: the support payments must be court-ordered and the parent must actually
be making the payments. A parent is not allowed to make deductions from their income for the
support of a subsequent spouse or child.
CHILDCARE EXPENSE:
States will usually take into consideration the amount that the parents must spend on childcare in
order to continue with their present job or look for another employment opportunity. Some states
will adjust the amount allowed for this expense to account for the Federal Dependent Care
Exemption on their Federal Income Taxes. Also, some states will eliminate the need for child care
expenses, if one party is paying child support. These additional costs are included in the child support
figure and the parent is not required to pay additional monies for child care.
HEALTHCARE EXPENSE:
The child support order will usually include who is responsible for paying for healthcare for the
children. The amount spent on healthcare is added to the basic child support order and then
credited to the parent who pays for it. Many state guidelines call for extraordinary expenses to be
treated as a totally separate expense. Usually extraordinary healthcare expenses are a shared
expense between both parties and have no impact on the child support payments.
OTHER EXPENSES:
The basic child care support may be increased or decreased depending on other situations which may
present themselves as the children, especially if they are young when the couple gets divorced, grow
up. Special needs, such as medical, or educational are usually the most prevalent. Other expenses
could include eye care or advanced dental expenditures that arise as the child grows up. If the child
needs special educational resources, this too could affect the amount of child support one parent is
required to pay.
SHARED CUSTODY AND VISITATION:
Many child support orders also take into account how much time is spent with each parent. The more
time the children spend with the less child support should be calculated. In other words, if you
share custody of your children, you will probably be awarded less support than in a sole custody
situation. In certain cases, the amount of child support will be calculated by a state’s guidelines;
however, other factors will enter into this amount. You should be aware of what these other factors
are and how you can modify a court ordered child support amount. In most cases, you will need to
site the factors that are causing the deviation from the normal standards, as well as in some states,
you can modify your child support amount due to special circumstances (i.e. loss of a job) or certain
period of time. Check with your local states guidelines or ask your BS Kids representative.
CHILD SUPPORT AND TAXES
As most people know, taxes are an integral part of life, but when it comes to what you can and what
you can claim or write off your taxes, here are some tips on child support and taxes. BS Kids
strongly suggests that you seek the advice of your accountant to see how this information can help
you, when filing your next tax return.
Child support, as far as the Federal Income Tax laws states is tax free to the recipient, meaning
that your ex-spouse or your children do not owe taxes on it. However, payments of child support are
not tax deductible by the parent who makes the payments.
In order to qualify as child support, the amounts an ex-spouse receives must be designated as child
support in the divorce or separation agreement. If the agreement lumps the payments together as
family support or alimony, none of the payment will be considered child support for tax purposes.
This can have a negative effect on the paying party, as alimony or family support is taxable to the
recipient.
Generally in order for someone to claim a child as a dependent, they must provide at least fifty
percent of the child’s support during the tax year. This may be hard to figure out, especially if your
ex-spouse has remarried or has gotten another job and you don’t know the new salary. If both
parties try to claim the children as dependents the IRS frowns on this, as they cross reference
dependents’ Social Security numbers. However, if the parents have a written divorce decree,
maintenance agreement or separation agreement, of it he parents lived apart at all times during the
last six months of the calendar year, there is a special rule that applies. If the child received more
than half of their total support for the year from one of both parents and was in the custody of one
or both parents during the year, the IRS assumes that the custodial parent should get the
exemption. Sometimes who will be allowed to get the exemption is part of the divorce decree and in
other situations, where there is more than one child and a joint custody arrangement; each parent
can claim the exemption for one of the children. Each situation is different, which is why we
recommend that you talk with your accountant prior to filing out any tax forms and or finalizing your
divorce decree.
In order for child support to be consistent and predictable, the Federal Government mandates that
child support guidelines be determined by each state. Each state has different guidelines, but here
are some common elements that are used to determine the overall amount of child support a party
has to pay. The best way to determine what your own individual state requires is to contact your
state’s government home page or your BS Kids representative.
INCOME:
Most of the guidelines take into consideration the income of both parties. The percentage of the
couple's combined income that each parent contributes helps determine the amount they are
required to pay in child support. Some states will base their formula on gross income, while others
will use net income.
DEDUCTIONS:
If a parent is already paying child support or alimony from a previous relationship, they will generally
be allowed to deduct that amount from their income. Typically there are two requirements to
qualify for this deduction: the support payments must be court-ordered and the parent must actually
be making the payments. A parent is not allowed to make deductions from their income for the
support of a subsequent spouse or child.
CHILDCARE EXPENSE:
States will usually take into consideration the amount that the parents must spend on childcare in
order to continue with their present job or look for another employment opportunity. Some states
will adjust the amount allowed for this expense to account for the Federal Dependent Care
Exemption on their Federal Income Taxes. Also, some states will eliminate the need for child care
expenses, if one party is paying child support. These additional costs are included in the child support
figure and the parent is not required to pay additional monies for child care.
HEALTHCARE EXPENSE:
The child support order will usually include who is responsible for paying for healthcare for the
children. The amount spent on healthcare is added to the basic child support order and then
credited to the parent who pays for it. Many state guidelines call for extraordinary expenses to be
treated as a totally separate expense. Usually extraordinary healthcare expenses are a shared
expense between both parties and have no impact on the child support payments.
OTHER EXPENSES:
The basic child care support may be increased or decreased depending on other situations which may
present themselves as the children, especially if they are young when the couple gets divorced, grow
up. Special needs, such as medical, or educational are usually the most prevalent. Other expenses
could include eye care or advanced dental expenditures that arise as the child grows up. If the child
needs special educational resources, this too could affect the amount of child support one parent is
required to pay.
SHARED CUSTODY AND VISITATION:
Many child support orders also take into account how much time is spent with each parent. The more
time the children spend with the less child support should be calculated. In other words, if you
share custody of your children, you will probably be awarded less support than in a sole custody
situation. In certain cases, the amount of child support will be calculated by a state’s guidelines;
however, other factors will enter into this amount. You should be aware of what these other factors
are and how you can modify a court ordered child support amount. In most cases, you will need to
site the factors that are causing the deviation from the normal standards, as well as in some states,
you can modify your child support amount due to special circumstances (i.e. loss of a job) or certain
period of time. Check with your local states guidelines or ask your BS Kids representative.
CHILD SUPPORT AND TAXES
As most people know, taxes are an integral part of life, but when it comes to what you can and what
you can claim or write off your taxes, here are some tips on child support and taxes. BS Kids
strongly suggests that you seek the advice of your accountant to see how this information can help
you, when filing your next tax return.
Child support, as far as the Federal Income Tax laws states is tax free to the recipient, meaning
that your ex-spouse or your children do not owe taxes on it. However, payments of child support are
not tax deductible by the parent who makes the payments.
In order to qualify as child support, the amounts an ex-spouse receives must be designated as child
support in the divorce or separation agreement. If the agreement lumps the payments together as
family support or alimony, none of the payment will be considered child support for tax purposes.
This can have a negative effect on the paying party, as alimony or family support is taxable to the
recipient.
Generally in order for someone to claim a child as a dependent, they must provide at least fifty
percent of the child’s support during the tax year. This may be hard to figure out, especially if your
ex-spouse has remarried or has gotten another job and you don’t know the new salary. If both
parties try to claim the children as dependents the IRS frowns on this, as they cross reference
dependents’ Social Security numbers. However, if the parents have a written divorce decree,
maintenance agreement or separation agreement, of it he parents lived apart at all times during the
last six months of the calendar year, there is a special rule that applies. If the child received more
than half of their total support for the year from one of both parents and was in the custody of one
or both parents during the year, the IRS assumes that the custodial parent should get the
exemption. Sometimes who will be allowed to get the exemption is part of the divorce decree and in
other situations, where there is more than one child and a joint custody arrangement; each parent
can claim the exemption for one of the children. Each situation is different, which is why we
recommend that you talk with your accountant prior to filing out any tax forms and or finalizing your
divorce decree.
Disclaimer: BS Kids LLC legal research and information has been prepared for educational and informational purposes only. This material is not legal advice or legal
opinions on any specific matters. Transmission of the information is not intended to create and receipt does not constitute a lawyer-client relationship between BS Kids
LLC , the author of the information and any other legal publisher. Customers of BS Kids should not act upon this information without seeking professional counsel. The
opinions expressed in the material presented to BS Kids clientele is based on information found in legal publications. BS Kids LLC, 6 Mackinac Court, Pooler, Ga.
31322 (912) 988-1001 or 781-756-1214.
opinions on any specific matters. Transmission of the information is not intended to create and receipt does not constitute a lawyer-client relationship between BS Kids
LLC , the author of the information and any other legal publisher. Customers of BS Kids should not act upon this information without seeking professional counsel. The
opinions expressed in the material presented to BS Kids clientele is based on information found in legal publications. BS Kids LLC, 6 Mackinac Court, Pooler, Ga.
31322 (912) 988-1001 or 781-756-1214.
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