How a dependence tax deduction is determined

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Even when parents have shared custody, it rarely works out where the child spends an even 50 percent of his or her time with both parents. The IRS gives the parent who had custody of the child the most throughout the year a tax break. Even if your divorce decree states that you share equal custody, both parents cannot receive the tax break. Below are ways to determine which parent can claim a dependent on their taxes:

The parent who spent the most days throughout the year with the child can claim him or her as a dependent. If you had your child 55 percent of the time and your ex had your child 45 percent of the time, you may claim a dependent.

If your child in fact did spend exactly half the time with both parents, the parent with the highest adjusted gross income gets to claim your child as a dependent.

Waiving the dependent tax deduction

A divorced couple can agree to terms on their own to allow one or the other to claim their child. The one who qualifies to claim the dependent can waive the deduction. In order to do this both parents must still pay 50 percent of the child’s living expenses for the year and the equal custody agreement must be memorialized in a court ordered divorce decree. If you and your ex agree to these terms, the one waiving the dependent can sign IRS Form 8332, giving the other the ability to claim the child as a dependent.

Determining Child Support

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While every case is different and there are no hard and fast rules when it comes to any family law matters, there are a few general guidelines for how some child support may be determined. When one parent makes commission, bonuses, overtime, tips, or other excess income beyond salary or hourly pay, the average income is typically used. When deciding income for child support purposes, the parent’s income is usually averaged on a monthly basis. This average includes any extra payments received beyond their regular or base income.

When determining this average income, the state may look at many different forms of payment including:

• Salary or wages
• Bonuses, commissions, overtime, tips, allowances
• Self-employment income, partnership income, independent contract income
• Disability benefits, including workers’ compensation
• Unemployment
• Retirement, social security, pension, interest and dividends

These are just a few of the things that can go into determining child support in a divorce or separation case. Each case is unique and child support is determined specifically for those parents. It is never advisable to tackle these kinds of cases alone. Family law attorneys are experienced in making sure the child’s best interest is reached, and everything in the case is accounted for.

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In the state of Florida, every child has the right to financial support from both their mother and father until the age of 18. Sometimes, that law is not always followed by the parent who is ordered to pay child support, and their child support becomes overdue or unpaid. Florida automatically deducts child support from the parent’s paycheck. The parent is required to notify the Department of Revenue when they have switched jobs, and the income deduction follows them to their new job. However, sometimes the parent fails to notify the Department of Revenue of an employment change, is paid illegally for side jobs, loses their job, or makes extra income. In these cases, the Department of Revenue is kept in the dark regarding the parent’s financial status, and payments are missed. When this situation occurs, there are many consequences that the parent could potentially face for not paying child support when a child support order is in effect. Here are a few of those potential consequences.

Failing to Pay Child Support Potential Consequences:

• Contempt of Court: The primary parent has the option to seek a lawyer, file a complaint, and get a judge’s ruling against the non-paying parent. In this case, the judge would most likely order the child-support-paying parent to pay a large fine or serve jail time.
• Arrest Warrant: Again, in this instance, it would be advisable to seek a lawyer for guidance. In this case, the primary parent would seek a lawyer, press charges, and a judge might place an arrest warrant for the parent that is overdue in their child support.
• Suspension of License: The state of Florida can suspend any driver’s license, fishing license, or hunting license of a parent that is overdue in child support.
• Florida Seizing Assets: The state of Florida could potentially begin seizing assets to make up for the parent’s overdue child support. Assets can include: tax returns, lottery winnings, unemployment payments, physical properties, bank and credit union accounts.
• Liens on Property: If the Department of Revenue needs to take extra measures to collect past due child support, the state has the right to place liens on property owned by the parent. Property includes homes, cars, boats, and more.

Every Case is Different

These are all potential consequences that a parent might face if they fail to pay child support. Every child support case is different, so there is no definitive order of consequences the state of Florida follows. It is best to always seek the help of a lawyer or attorney when dealing with any sort of divorce, child custody, or child support cases.

Source: https://dor.myflorida.com/dor/childsupport/pdf/cs170.pdf – Florida Department of Revenue

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There are several reasons why a parent may want modification to their child support. The parent paying the child support might have lost their job, gotten a new, lower paying job, or seen an increase in child expenses. The parent receiving the child support may seek an increase in child support because the child expenses have gone up, they have the child more time, or they may be reacting to the other parent’s raise in salary. Whatever the reason, a modification of child support in Florida can be achieved under the right circumstances. Below is a brief overview of some of the circumstances that could constitute a modification in child support.

Change in Income

Modifications can be sought if there has been a substantial change in income. By substantial change, most attorneys may tell you this means the change in income would result in a 15% or $50 change in child support payments. This change can either be in increase or decrease of payment. Seeking the advice of an attorney is vital in making the decision to attempt a modification of child support in Florida. They will be able to assist in reviewing financial information and determining if the child support payment will increase or decrease by 15% or $50, whichever is lowest.

Change in Child Expenses

Along with income, some attorneys may suggest that a modification in child support is achievable if there has been a change in the child expenses. Examples of these expenses are daycare, school care, medical, supplies, classes, activities, you name it. A parent receiving child support may need additional child support to help with additional expenses. A parent paying child support may seek a modification if they feel their payments should be reduced due to a lack of child expenses by the other parent. In either case, a lawyer will help you determine if the situation justifies a modification in child support.

Change in Parenting Plan

A modification in child support in the state of Florida might be granted if there is a change in the parenting plan. This plan change could result in more or less time with the child, which can be reflected on the child support modification wanted. A modification could be sought as a result of a change in the parenting plan. The parent then might be able to file a modification to gain more child support for the increase in time and expenses.

If the circumstance allows, a Supplemental Petition to Modify Child Support may be filed, with the help of a lawyer. Then, the attorney will help through the process as financial information is reviewed and a mediator is seen. In some cases, the modification might go to a judge for a ruling.

If there has been a change in income, an increase or decrease in child expenses, or a change in the parenting plan, a modification to child support may be granted. Seek the advice of an experienced attorney to assist through the case as each situation is different.

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A recent question came through about a Florida man who had been living with and supporting his child and her mother for several years after they had divorced. Along with the divorce, the mother was awarded a child support order. Though the couple reconciled for several years, the mother never terminated the child support order—and when the mother and father did eventually split permanently, the man was hit with all of those years of child support payments. He owed child support for years while he was living with and supporting the child, as his tax, insurance, auto registration and payroll information can confirm.

Does this father have any legal recourse in Florida in this case? It turns out, he probably does.

His first order of business will be to get the original order of child support modified to better align the circumstances that changed from the time that the child support was initially ordered. The major circumstance being that after the breakup, he continued to live with and pay for all expenses related to the child. The important document in this example is called a Uniform Child Custody Jurisdiction and Enforcement Act Affidavit, and this document is where the parents list the addresses where the children have lived and with which guardian(s). This document will confirm for the courts that both parents lived with the children at the same address.

His next step will be to get a motion to correct the child support account—that is, to show the arrearages from the years the parents lived together with the children.

It is important to remember, that with most things related to the courts, it may take weeks or months to correct the child support order, but it shouldn’t be that difficult. If the father has his facts in line and can provide proof of residence and support, following the proper channels and documentation steps will ensure that he may adjust the child support order to a correct and accurate level.

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In mid-September, a Florida man pleaded guilty to owing over $90,000 in child support. He hadn’t made a single payment since 2012, at which time he already owed over $60,000 in Florida child support. He now faces up to two years in jail and a $250,000 fine. What’s more, in addition to the jail time and hefty fine, he still must pay the $90,000 in overdue child support.

While this man is an extreme case, the lesson should be clear: Florida law expects support orders to be followed.

Here is a little about how the child support system works, including how child support is determined.

Once parents have gone their separate ways, child support is required if a child support order has been filed.

Florida views child support as a right every child has to ensure the child is consistently provided for. Whether it is shelter, food, clothing, or any other necessities, the state of Florida holds the child’s needs as paramount.

This court order specifies the amount and type of child support the parents need to provide for the children. Under the child support order, there are many benefits included, such as: the amount of child support required to be paid, paternity benefits (where the father gets legal rights in cases where the mother wasn’t married at time of the child’s birth), and medical insurance plans. Any medical costs that are not covered under medical insurance plans are also included in the benefits.

There are two different ways to get a child support order in the state of Florida: administrative and judicial. For the administrative route, parents avoid a court hearing by determining the type of support and amount with an official. The judicial process requires a court hearing for a judge to evaluate financial information; after which, he will then inform the parents of his decision on the amount and type of support to be included in the order.

After the type and amount of child support has been determined, it is quite easy to make and receive payments, using the Florida Department of Revenue’s website. Payments can even be made by cash, check, in person or by mail. If a payment can’t be made due to circumstantial changes, Florida allows for modifications to the child support order be filed.

In any case, it is important to have a knowledgeable, experienced attorney by your side through child support cases. Counsel will help you correctly file orders, modifications, and clue you in on where you are at in the process.

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