Tax Dependency Exemption: Child Support Payments & Obamacare

Effect of “Obamacare” on Tax Dependency Exemption and Required Medical Care for Separated Parents

tax dependency exemption child suuport obamacareParents frequently complain about how their children do nothing but cost them money.   However, when it comes to taxes, children can actually save their parents some money.  Parents are able to receive certain tax deductions for medical care provided to their dependent child as well as receiving certain personal exemptions for each individual they claim as a dependent.  This has the potential to save parents thousands of dollars on their tax returns, since the exemption will reduce their taxable income by a fixed amount.  For 2016, the deduction amount ranges up to $4,050 for each exemption claimed.

For parents that are together and file their taxes jointly, there is no controversy as far as the dependency exemptions and deductions are concerned, as their child is seen as the dependent of both of them.  When parents are separated or divorced, this becomes a bigger issue since only one parent can claim a child as a dependent for tax purposes.   Since child support payments are not deductible or taxable, being able to claim a child as a dependent has important tax implications in regards to parents and the … Read More... “Tax Dependency Exemption: Child Support Payments & Obamacare”

International Child Support Recovery Ratification Signed By President Obama

New Hague Convention Ratification Agreement Expected to Make International Child Support Collection Quicker and Less Costly!

international child supportThis week President Obama signed the instrument of ratification to the 2007 Hague Child Support and Maintenance Convention addressing International Recovery of Child Support. This international child support signing was accomplished in great part due to the extensive work done by US family lawyers, by the Hague Convention on Private International Law, and by many others.

At present the only signatory countries are EU Members States, Norway, Albania, Ukraine and Bosnia-Herzegovina.  Many other countries are actively considering joining, but were waiting for the United States to endorse it.

International Child Support

The ratification of this agreement provides new provisions that, for the first time on an increasing global scale, will create hopefully efficient, timely, and cost effective procedures for the processing of international child support cases. While these types of procedures have been commonplace in the United States, the same is not true globally. Many foreign countries will not enforce US support orders in the absence of a treaty obligation. This ratification of the Convention by the United States will mean that more children residing in the United States will receive financial support from … Read More... “International Child Support Recovery Ratification Signed By President Obama”

Child Support and Visitation: Should One Be Dependent Upon The Other?

Should Child Support Payments And Visitation Rights Remain Independent Of Each Other In Ohio?

Recent New York Ruling Says Child Support And Visitation Are Linked And Dependent Upon One Another

child support visitation ohioAs a general rule, the payment of child support and visitation are two completely, separate issues in the eyes of the Court.  Visitation rights are granted where it is in the “best interest of the child” to have such in place.  They are not dependent upon the amount or payment of child support.  Likewise, child support is determined according to the Child Support Guidelines and has very little to do with visitation.  As a result, paying child support does not entitle a parent to visitation.  And, if a parent has court-ordered visitation, it cannot be withheld because they have failed to pay their child support.   However, in a recent case out of New York, the Appeals Court there held that support payments should have been suspended where the child was not required to abide by the ordered visitation schedule.

In its opinion, (click here to read) the Appellate Division, Second Department, found that Robert Coull had not seen his 13-year-old son in approximately 5 years due, in large … Read More... “Child Support and Visitation: Should One Be Dependent Upon The Other?”

Child Support: Jackpot Earnings Can Be seized From Child Support

Casino Jackpot? Maybe Not. Another ‘Weapon’ for the Child Support Enforcement Agencies of Ohio

child support ohio jackpotThe State of Ohio has eighty-eight (88) counties and each county has a Child Support Enforcement Agency (“CSEA”) tasked with the collection of child support payments from Obligors (primarily Fathers and former Husbands). For many years, the Child Support Enforcement Agencies have been able to “intercept” Income Tax Refunds of Obligors having arrearages in their child Support Accounts.  Recently, a new “weapon” has been added to the arsenal of the Child Support Agencies.  They can now intercept racino or gambling winnings of Obligors who are behind with child support payments.

In an August 5, 2015 posting, it was reported that two (2) million dollars in unpaid child support had been “seized” from jackpot winners at the state’s casinos and racinos in the last eleven (11) months. (Caveat:  It appears that “deadbeat” Dads are also inclined to gamble!!  I was surprised at the amount of child support seized from gambling earnings!)  To achieve this success rate, the Ohio Department of Job and Family Services has been working with the casinos and racinos to check “jackpot winners” against a database of Child Support Obligors who owe child support.… Read More... “Child Support: Jackpot Earnings Can Be seized From Child Support”

Kids Say That Divorced Parents Should Pay The Same Amount For Child Support

child_surv.jpgI came across an interesting survey last month in the Gordon Poll Youth Survey published by the Wilmington Institute Network. Dr. Robert Gordon is the founder and director of the Wilmington Institute of Trial and Settlement Sciences. He is a past president of the Texas Psychological Association and is author of “On the Witness Stand.” He is both a clinical psychologist and a lawyer. The work of Dr. Gordon and the institute team has been featured on the MacNeil-Lehrer News Hour, ABC, Nightline, CNN, Fox News, Larry King Live, Good Morning America and USA Today.

The Gordon Poll Youth Survey focuses on family life issues. It is conducted for the benefit of parents, educators and members of the legal and mental health professions. The May 2009 survey was compiled from a sample size of 1,000 children between ages 14-18, and they are from a self-selected national sample that includes all 50 states.

The Question for May was: “In a divorce, how much money should each parent pay to support their children?” n for May was: “In a divorce, how much money

Answers in %

Each parent should pay the same

[bar.gif] 40.22%

The parent who earns more should pay more

… Read More... “Kids Say That Divorced Parents Should Pay The Same Amount For Child Support”

If You Owe Back Support, Don’t Expect Your Stimulus Check

The IRS is treating the stimulus checks as if they were tax refunds. On their website, the IRS indicates that the amount of the stimulus check will be reduced or seized if :

  • You are single and your net income tax liability is less than $600. If you file Form 1040 net income tax liability is the amount shown on Line 57, plus the amount on Line 52.
  • You are married and your net income tax liability is less than $1,200.
  • You are single and your adjusted gross income (AGI) is more than $75,000. On Form 1040, AGI is the amount on Line 37.
  • You are married filing a joint return and your AGI is more than $150,000.
  • You owe back taxes that reduced your payment.
  • You have non-tax federal debts such as unpaid student loans or child-support obligations that reduced your payment.

If the IRS is reducing or seizing your stimulus check, they are supposed to mail you a letter of explanation.

So what do you do if you and your spouse have filed a joint return and your spouse owes back child support if you want to avoid having the IRS seize your share? Well, you may fall … Read More... “If You Owe Back Support, Don’t Expect Your Stimulus Check”