I’m going to walk through what all these numbers mean in a Child Support Guidelines Worksheet. videos that offer a more in-depth discussion of child support, income, and deductions. In this short video, I display a Child Support Guidelines Worksheet and walkthrough – part by part – what the various numbers mean and how they impact the calculation. They tell me that they were presented with a piece of paper with a lot of numbers on it – but no explanation about what those numbers mean. The number one complaint is that they are not sure that the calculation is correct. "People need to make sure they're taking advantage of those child tax credits since we don't have dependency exemptions anymore," DuFault says. “Be aware of any terms in your separation and divorce documents that address who can claim these credits and when.I get a lot of phone calls from people who recently attended a hearing where their child support obligation was calculated. And if a parent is still supporting a child over 17, they could claim a dependent credit for up to $500, he says.Ī tax credit is generally better than a deduction because a deduction only reduces your income, whereas a credit will reduce the tax you owe, DuFault explains. A person with children under 17 may still be able to claim the Child Tax Credit for $2,000 per child, according to David DuFault, an attorney at Charlotte, North Carolina-based Sodoma Law. But those exemptions can no longer be used. Parents had previously been able to claim a dependency exemption for each child they supported, which worked like a tax deduction by reducing their taxable income.īut there's still good news.
Prior to 2018, filers were allowed to take dependency exemptions for children.
And child support payments aren't deductible by the payer or taxable to the recipient. Those are now considered personal expenses under the law. Spouses can no longer deduct legal fees or any expenses related to divorce like they could before. The new tax law also affects divorce expenses. Want to file your tax returns for free?: New IRS changes make it easier That letter from the IRS could be fake: Watch out for this tax scam and others in 2020 “For recipients, alimony payments can’t be invested into an IRA, which can be problematic for a partner who’s not working and all of their income comes from alimony,” English says. The new rules could restrict how alimony recipients stash money away for retirement. When a spouse paying alimony transfers funds from their individual retirement account to use as alimony payments, those funds will no longer be taxed upon withdrawal, according to English. The receiving spouse will then pay tax on that money once they receive it.
CHILD SUPPORT FL CALCULATOR 2016 CODE
The tax code changes will also affect IRAs.
CHILD SUPPORT FL CALCULATOR 2016 HOW TO
Nervous about the size of your tax refund?: You're not aloneĭid your tax preparer just take a cut of your refund?: Here's how to stay safe If they're not required to report alimony income for health care, their income will be lower and they could potentially get a better subsidy, experts say. It could also affect social programs that alimony recipients qualify for since their income will appear lower than it actually is. The tax changes benefit people receiving alimony in most cases, according to tax professionals, because they are no longer required to claim alimony as income and won’t pay tax on it. Stock market secrets: A view of stock investing from veteran markets reporter Taxes 2020: How long will it take to get my tax refund this year?
31, 2018.ĭivorce, “can have a pretty meaningful effect on the outcome for individuals’ incomes,” says Katie Prentke English, co-founder of Harness Wealth, a New York-based digital platform that helps individuals find financial, tax, and legal advisers. Thinking about splitting with your spouse? The 2017 tax overhaul has made things more complicated.įor recently divorced Americans, alimony payments are no longer tax-deductible for the payer, and they aren't considered taxable income for the person receiving them, ending a decades-long practice. The changes affect divorce agreements signed after Dec.