According to a U.S. Census Bureau Report conducted in 2010, it was concluded that 4.8 million parents made child support payments worth $24.4 billion for children below 21 years. The report further noted that 85% of child support providers were male. Child support payments are meant to provide financial insecurity and prevent poverty among children and their custodial parents. It is also a way of involving the non-custodial parent in raising their child. Let us review some of the basic elements of paying child support.
Child Support Payments in Relation to the IRS
IRS does not consider child support payments as taxable income. This means that child support payments should not be included during gross income calculations when you are filing a tax return. Furthermore, child support payments are not taxable to the custodial parent and cannot be deducted from the non-custodial parent's income.
Income and Support Orders
When giving an order for child support, a judge needs to follow certain state guidelines. These guidelines are based on the income of the parent required to pay for child support. In child custody cases, income is more than salary and wages. It is crucial for parents to understand which funds are regarded as “income”. For instance, when the parent paying for support has a new spouse, the income used on that spouse, to the extent that it decreases the expenses directed to the custodial parent, is regarded as income in child support cases.
Disability Payments With Regards to Child Support
If you are entitled to disability benefits from your past employer, this income is considered when determining child support payments. However, Supplement Security Income and Social Disability Income are not taken into account in child support determinations.
A New Job and How it Affects Child Support
If you have changed jobs, it does not mean that the child support you are required to pay will change to match your new income. However, if you switch to a lower paying job, you can file a petition in court to have the child support order changed. Similarly, the child's custodial parent may petition the court to modify the child support order if you are earning a higher wage from your new job.
Reimbursement of Child Support
Many states have statutory laws that indicate the procedure for getting a reimbursement of medical premiums, medical expense, and child care expenses to the non-custodial parent. Consult with a lawyer like those at Thomas Associates Law Firm LLC. to know the position of the statutory laws in your state regarding this matter. Some states provide a limited time within which you can request for a reimbursement. Other states will only give reimbursement for a particular percentage of your expenses.
Child support payments are made to ensure that a custodial parent and their child are secured against financial difficulties. These payments are determined by the court which also is involved in ensuring that the non-custodial parent lives up to this obligation. Child support also ensures that the non-custodial parent is involved in the welfare of their child. The following five details will help you know your rights on the payment of child support.