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Registering for Advance Child Credit Payments

As you may know, the IRS is making advance payments on account of the Child Tax Credit, starting July 15, and continuing monthly throughout the remainder of 2021. What you may not know is that the IRS is actually willing to send these payments even to people who never filed a tax return! The IRS…

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Advance Child Tax Credit Payments

Get ready to answer your phone … possibly, a lot! Starting July 15, millions of families will start receiving monthly child tax credit payments. Your clients could be among them, and they’ll definitely have questions. As part of the $1.9 trillion American Rescue Plan of 2021, signed into law in March, roughly 39 million families…

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American Rescue Plan Webinar

On May 27, Dan Caine, the President of Family Law Software, presented a Webinar on the American Rescue Plan — Provisions and Strategies. We have now posted that Webinar on YouTube, and you may view it here: If you wish to view the slides, you may do so here. During the Webinar, people typed questions…

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Watch Out for “Exactly Equal Parenting”

It is an important but little-known fact that in the event of exactly equal parenting, the tax law provides that the higher-income parent will be considered as custodial. This seems innocuous, but in fact, this determination could have a number of unpleasant consequences. First, the lower income parent would be denied the ability to claim…

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CONNECTICUT CHILD SUPPORT AND ALIMONY

CHILD SUPPORT The Connecticut child support guideline formula is based on the monthly net incomes of both parents.   To determine the net income of the parties, all taxable sources of income are reduced by the applicable federal, state and local income taxes, based upon all allowable exemptions, deductions and credits.   Family Law Software…

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NY MAINTENANCE AND CHILD SUPPORT

The New York law provides maintenance and child support guideline formulas. MAINTENANCE In New York, maintenance (also known as alimony in other states) is based on a number of financial factors in the case. In order to assist in the determination of the appropriate amount, the statute has a formula based on the gross income…

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COLORADO MAINTENANCE AND CHILD SUPPORT

Colorado law provides formulas to help determine the appropriate amounts of maintenance and/or child support. MAINTENANCE In Colorado, maintenance (also known as alimony in other states) is based on a number of financial factors in the case. In order to assist in the determination of the appropriate amount, the statute has a formula based on…

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Impact of American Rescue Act on Child Support

The American rescue act affected three credits in dramatic way, especially for lower income households. Click here for our blog post about these credits. These credits dramatically increase after-tax income, especially for lower-income households, but they are effective only for the year 2021. How does this affect child support? The impact on child support occurs…

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Children as Tax Dependents

For divorced parents or parents who are separated or living apart, the term “Dependent” means that a child is the parent’s “qualified child”.  The IRS uses the term “custodial parent” for the parent with the qualified dependent child. This term should not be confused with the designation of “custody” in the state court order.   …

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American Rescue Plan

As you may know, Congress passed a stimulus bill in March, 2021, officially called the American Rescue Plan. The bill has many provisions, but three tax provisions in particular will affect the calculations in Family Law Software, especially for the 2021 tax year, with significant impact on cash flow, taxes, and child support. This will…