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How much Child Support to Pay?

How Do Child Care Costs Get Factored In?

The cost of child care can likewise be apportioned between the parents. Because child care costs are incurred so that a parent is able to earn income, it means that a greater amount of combined income is available for the support of the child. Since both parents benefit from the cost of child care, this cost is divided between the parents (usually 50% each). The parent who actually pays the child care expense receives payment from the other parent.

How Long Must Child Support Be Paid?

The duration of this responsibility depends upon state law. All states require both parents to be financially responsible for their child during the child's minority, generally through the child's high school years. A few states have extended the time for financial responsibility beyond the minority of the child. Child support can be terminated in the event of the death of the child, if the child goes on active duty in the armed forces, or if the child becomes emancipated or self-supporting.

What Income Items Do Typical Formulas Cover?

The formula is based on the respective net incomes of the parents. Federal and state income taxes,Social Security and Medicare tax,health insurance,union dues and other mandatory expenses are subtracted from a parent's gross income (that is, income from all sources including, but not limited to, wages and investments) to arrive at his/her net income.

How Do You Show Income?

The court can require documentary evidence, such as pay statements, profit/loss statements of sole proprietorships, and tax returns, to be produced and certified as true under penalty of perjury. The intent is that all income received by a parent will be considered when his/her net income is being calculated.

If you suspect that a party is hiding income -- such as by not reporting "cash" or "off the books" income -- it may be difficult to prove, but an experienced lawyer or professional investigator usually is able to help you figure out how to do so.

What Are The Tax Consequences Of Child Support?

For federal income tax purposes, child support payments you receive are not income ? they are tax free to you. The parent who makes the payments cannot deduct the amount as an expense on his or her federal tax return. However, sometimes parents are able to negotiate higher alimony (which is deductible by the parent making payments and taxable income to the receiving parent) to generate tax savings.

My Income Dropped Dramatically When I Was Laid Off My Job And Cannot Make My Child Support Payments. Is There Any Way I Can Lower The Payments?

Unexpected, significant decreases in income can be a reason to request modification of your child support order. Before incurring the additional expense of a court-mandated change, one route is to ask the other party to agree to a temporary reduction or deferral (if need be). If successful, put the terms in writing, sign, and date the document, preferably with the advice of a lawyer.