Where there are 2 dependent children and both parents earn in excess of $2,500 gross each month does this mean that only 75% of the monthly costs of childcare for the purposes of work are input into the Worksheet B?
e.g.
$ 3,200 Gross Income Parent A
$100 Gross childcare costs per month
$ 3,500 Gross Income Parent B
So parent A would input only $75 into the worksheet B for monthly childcare costs?
Not sure where this info comes from in the rules etc?
“When the income of the parent who pays child care costs exceeds the amounts indicated above [$2,500 and support is being paid for 2 children], only 75% of actual child care costs are added (because the parent is entitled to the income tax credit for child care expenses).”
At these income levels, the parent who pays child care costs does not benefit from the tax credit for child care. When the income of the parent who pays child care costs exceeds the amounts indicated above, only 75% of actual child care costs are added (because the parent is entitled to the income tax credit for child care expenses).
[/quote]
Is the online child support tool provided by Rosen programmed to output the correct support amount based on the 25% reduction of the number input if the gross incomes of the parents exceed the $1,500 amount ? Or is it the responsibility of the person imputing the childcare amount to reduce it by 25% when they input the amount?
Also, does your online tool handle it the same way the State’s does? I.e. does the State’s also require the 25% reduction if incomes exceed the per child totals?
Yes, our calculator takes the 25% reduction required under the guidelines. Yes, child support enforcement should also take the reduction when making the calculation.