Child Support, Dependants and Taxes

"Roger_N" wrote in message
...
I've told some people about fathers paying child support don't get to
deduct
that money from their income, and mothers receiving the money don't have
to
claim the income. The universal response is that they can't hardly
believe
it because they know the IRS wants to know about almost any kind of
income.

Is there a way we could press toward having CS deducted from NCP's taxable
income and added to CP's income? The fact is, Child Support is deducted
from my income and is added to my EX's income. Why shouldn't these facts
be
the way it is claimed on taxes? The best I can determine, the general
public thinks that is the way it already is. When you find out all the
unfair treatment of NCP's, you understand why there are so many deadbeat
dads, because of the deadbeats that make the rules.

This area of CS awards is never explained fully and is filled with potential
abuse. Here are the problems:

1. Research behind the expenditures on children data which forms the basis
for CS guidelines is based on net dollars spent out of available after tax
income. Some of the expense categories are based on marginal costs while
others are based on child-only expenses.

2. The numbers get "adjusted" to convert them to gross income. (When two
parents have totally different tax filing statuses, different exemptions,
and different deductions I find it incredible they can claim to these
adjustments and I'm particularly suspect since they never disclose how they
do the adjustments.)

3. The numbers are then adjusted to remove childcare, healthcare, etc. that
are add-ons to the guidelines.

4. No tax consideration is made for EIC, healthcare deductions, childcare
credits, education credits, etc.

5. Getting a judge to listen to arguments over CS guideline amounts versus
tax consequences is impossible. They are lazy and treat the CS guidelines
as de facto.

The sad truth is - If the CS was taxable to CP's and deductible to NCP's the
CS awards would be higher than they are already to compensate for the shift
of tax burden.

"Bob Whiteside" wrote in message
...
The sad truth is - If the CS was taxable to CP's and deductible to NCP's
the
CS awards would be higher than they are already to compensate for the
shift
of tax burden.

So, if one mother makes $10K a year plus gets $10K per year in CS, and
another mother makes $15K per year and gets $0 CS. The mother that has $20K
per year only has to claim $10K but the mother that makes $15K has to count
all her income on her taxes.

Same for NCP's, two NCP Dads may each make the same $ per year, one pays his
CS and the other doesn't. They both have the same income and dependant
claims on their taxes. Everybody's down on Deadbeat dads but our government
does everything it possibly can to encourage it.

"whatamess" wrote in message
ups.com...
On May 24, 9:19 am, wrote:
On May 24, 12:44?am, "Kenneth S." wrote:





"Roger_N" wrote in message

...

I pay child support for 3 daughters and in the beginning it was never
stated who claims who as dependants on the divorce papers. Last time
she
took me to court to raise CS, I mentioned to the judge that I would
like to
be able to claim one or two of them as dependants on my taxes. She
threw a
fit and said she'd let me claim one of them, and she did for a couple
of
years. Last year she changed her mind. The bottom line is that I pay
32%
of my income for child support and I don't get to claime that I pay a
single penny. She claims that she supports a 3 daughters and doesn't
have
to claim that she gets a single penny in CS.

Why don't they just have it where the NCP deducts the CS, the CP
claims CS
as income, and the CP claims the children as dependants? They should
call
it the DUH bill! NCP deducts child support from his income because
the CS
is deducted from his income, DUH. CP claims the CS as income because
she
recieves it as income, DUH. CP Claims the children because she/he is
the
CP, DUH. What is right seems so obvious but for some reason they
don't do
it that way.

But there IS a reason why custodial parents win out on both sides
of the
tax equation (getting the "child support" tax-free and ALSO getting the
tax
deductions for the children, unless specific arrangements have been
made to
the contrary).

That reason is the same one that explains so many other features of
domestic relations law in the U.S.--overwhelmingly, custodial parents
are
mothers, and belong to the politically correct sex, whereas fathers are
scapegoated. Until fathers have some effective political clout, that
situation will continue. Currently, fathers are like blacks in the old
Jim
Crow days.- Hide quoted text -

- Show quoted text -

Some can also get the EIC if their OWN income is low enough..- Hide
quoted text -

- Show quoted text -

OUTRAGEOUS LAWS...on CS and Taxes...Earned Income Credit...from the
IRS website...So for one family where the ex/children receive 12K a
year or more in CS, they can still qualify for the EIC...but in the
NCPs family, where they earn 12K less because the money goes to the
CP, the NCPs family cannot claim the credit if their income is not
within the guidelines including the amount of CS they pay?
Outrageous...

If the noncustodial parent receives permission from the custodial
parent to claim a child on his or her tax return, is the noncustodial
parent eligible for the earned income credit?

No. The noncustodial parent cannot claim the earned income credit for
a child did not live with him or her, and therefore, does not meet the
residency test. The custodial parent may be able to claim the earned
income credit.

This is NOT totally correct, My state (michigan) put right in my divorce
papers that the children have a legal residense at both mine and my ex-wife
home and therefore are considered "residence" of BOTH homes, The irs only
requires NON parents to qualify by the "time" restrictions that a Gaurdian
would have to meet in order to qualify for the write off. The other
question lies in whether the custodial parent filled the form the IRS
provides to allow the NCP to claim the children which must be filed with the
NCP return. If the children can be claimed as a dependant then all the
other rules then also apply for EIC. (and I have SOLE physical and legal
custody of all 3 of my children)

Is child support considered income when calculating the earned income
credit?

This is NOT income NOR a deduction to either parent.

No, for purposes of calculating the earned income credit, child
support is not considered earned income. Earned income generally means
wages salaries, tips, other taxable employee pay, and net earnings
from self-employment. Employee pay is earned income only if it is
taxable. Nontaxable employee pay, such as certain dependent care
benefits and adoption benefits, is not earned income. But there is an
exception for nontaxable combat pay, which you can choose to include
in earned income. Earned income is explained in detail in Rule 7 in
chapter 1 of Publication 596, Earned Income Credit.