10/8/2015. KANSAS CHILD SUPPORT GUIDELINES Pursuant to Kansas Supreme Court Administrative Order No Effective January 1, 2016

Transcription

1 10/8/2015 KANSAS CHILD SUPPORT GUIDELINES Pursuant to Kansas Supreme Court Administrative Order No. 284 Effective January 1, 2016

2 TABLE OF CONTENTS I. USE OF THE GUIDELINES... 1 II. DEFINITIONS AND EXPLANATION... 2 II.A. Child Support... 2 II.A.1 Direct Expenses... 2 II.A.2 Indirect Expenses... 2 II.B. Child Support Worksheet... 2 II.C. Child Support Schedules... 2 II.D. Domestic Gross Income - Wage Earner... 3 II.E. Income Computation - Self-Employed... 4 II.E.1. Self-Employment Gross Income... 4 II.E.2. Reasonable Business Expenses... 4 II.E.3. Domestic Gross Income - Self-Employed... 5 II.F. Imputed Income... 5 II.G. Child Support Income... 6 II.H. Child Support Adjustments... 6 III. GENERAL INSTRUCTIONS... 6 III.A. Documentation... 6 III.B. Applications... 6 III.B.1. Rounding... 6 III.B.2. Age... 7 III.B.3. Income Beyond the Child Support Schedule... 7 III.B.4. More than Six Children... 7 III.B.5. Divided Residency Situations... 7 III.B.6. Multiple-Family Application... 8 III.B.7. Sharing Equal or Nearly Equal Time and Expenses... 8 III.B.8. Residence with a Third Party III.B.9. Interstate Pay Differential III.B.10. Birth Expenses IV. SPECIFIC INSTRUCTIONS FOR THE WORKSHEET IV.A. Income Computation - Wage Earner (Section A) IV.B. Income Computation - Self-Employed (Section B) IV.C. Adjustments to Domestic Gross Income (Section C) IV.C.1. Domestic Gross Income (Line C.1) IV.C.2. Court-Ordered Child Support Paid (Line C.2) IV.C.3. Court-Ordered Maintenance Paid (Line C.3) IV.C.4. Court-Ordered Maintenance Received (Line C.4) IV.C.5. Child Support Income (Line C.5) IV.D. Computation of Child Support (Section D) I

3 IV.D.1. Child Support Income (Line D.1) IV.D.2. Proportionate Shares of Combined Income (Line D.2) IV.D.3. Gross Child Support Obligation (Line D.3) IV.D.4. Health, Dental, Orthodontic, and Optometric Expenses (Line D.4) IV.D.5. Work-Related Child Care Costs (Line D.5) IV.D.6. Parents Total Child Support Obligation (Line D.6) IV.D.7. Parental Child Support Obligation (Line D.7) IV.D.8. Adjustment for Health, Dental, Orthodontic, and Optometric Premiums and Work-Related Child Care Costs (Line D.8) IV.D.9. Basic Parental Child Support Obligation (Line D.9) IV.E. Child Support Adjustments (Section E) IV.E.1. Long-Distance Parenting Time Costs (Line E.1) IV.E.2. Parenting Time Adjustment (Line E.2) IV.E.3. Income Tax Considerations (Line E.3) IV.E.4. Special Needs (Line E.4) IV.E.5. Support of Children Beyond the Age of Majority (Line E.5) IV.E.6. Overall Financial Conditions of the Parties (Line E.6) IV.E.7. Total (Line E.7) IV.F. Deviation(s) From Rebuttable Presumption Amount (Section F) IV.F.1. Basic Parental Child Support Obligation (Line F.1) IV.F.2. Total Child Support Adjustments (Line F.2) IV.F.3. Adjusted Subtotal (Line F.3) IV.F.4. Equal Parenting Time Obligation IV.F.5. Enforcement Fee Allowance (Line F.5) IV.F.6 Net Parental Child Support Obligation (Line F.6) IV.F.7. Required Worksheet Signatures IV.G. Payment of Child Support V. CHANGE OF CIRCUMSTANCES VI. REVIEW OF GUIDELINES ENDNOTES APPENDIX I Child Support Worksheet APPENDIX II Child Support Schedules APPENDIX III Domestic Relations Affidavit APPENDIX IV Interstate Pay Differential APPENDIX V II

4 Income Tax Considerations Section A - Dependent s Exemption And Child Tax Credit Section B Head of Household Adjustment Section C Additional Information APPENDIX VI Cafeteria Plans and Salary Reduction Agreements APPENDIX VII Completed Sample Child Support Worksheet Completed Sample Child Support Worksheet Equal Parenting Time (EPT) Worksheet APPENDIX VIII Examples and Scenarios for Preparing the Child Support Worksheet EXAMPLE 1. Section IV. Specific Instructions for the Worksheet EXAMPLE 2. Section III. General Instructions APPENDIX IX Military Pay and Allowances APPENDIX X Example Plans for Sharing Direct Expenses Under III.B APPENDIX XI Shared Expense Formula Example Equal Parenting Time (EPT) Worksheet (Sample) Equal Parenting Time (EPT) Worksheet TOPIC INDEX III

5 Child Support Worksheet APPENDIX I IN THE JUDICIAL DISTRICT COUNTY, KANSAS IN THE MATTER OF: and CASE NO. CHILD SUPPORT WORKSHEET OF (name) PARTY NAME PARTY NAME A. INCOME COMPUTATION WAGE EARNER 1. Domestic Gross Income $ $ (Insert on Line C.1. below)* B. INCOME COMPUTATION SELF-EMPLOYED 1. Self-Employment Gross Income* 2. Reasonable Business Expenses (-) 3. Domestic Gross Income (Insert on Line C.1. below) C. ADJUSTMENTS TO DOMESTIC GROSS INCOME 1. Domestic Gross Income 2. Court-Ordered Child Support Paid (-) 3. Court-Ordered Maintenance Paid (-) 4. Court-Ordered Maintenance Received (+) 5. Child Support Income (Insert on Line D.1. below) D. COMPUTATION OF CHILD SUPPORT 1. Child Support Income + = 2. Proportionate Shares of Combined Income % % (Each parent s income divided by combined income) 3. Gross Child Support Obligation** (Using the combined income from Line D.1., find the amount for each child and enter total for all children) Age of Children Total Number Per Age Category Total Amount + + = * Interstate Pay Differential Adjustment? Yes No **Multiple Family Application? Yes No 34

6 Case No. PARTY NAME PARTY NAME 4. Health and Dental Insurance Premium $ + $ = 5. Work-Related Child Care Costs Formula: Amt. (Amt. x %) for each child care credit = Example: 200 (200 x 30%) 6. Parents Total Child Support Obligation (Line D.3. plus Lines D.4. & D.5.) 7. Parental Child Support Obligation (Line D.2. times Line D.6. for each parent) 8. Adjustment for Insurance and Child Care (-) (Subtract for actual payment made for items D.4. and D.5.) 9. Basic Parental Child Support Obligation (Line D.7. minus Line D.8.; Insert on Line F.1. below) E. CHILD SUPPORT ADJUSTMENTS AMOUNT ALLOWED APPLICABLE N/A CATEGORY PARTY NAME PARTY NAME 1. Long Distance Parenting Time Costs (+/-) (+/-) 2. Parenting Time Adjustment (if b. %) (+/-) (+/-) 3. Income Tax Considerations (+/-) (+/-) 4. Special Needs (+/-) (+/-) 5. Agreement Past Majority (+/-) (+/-) 6. Overall Financial Condition (+/-) (+/-) 7. TOTAL (Insert on Line F.2. below) F. DEVIATION(S) FROM REBUTTABLE PRESUMPTION AMOUNT AMOUNT ALLOWED PARTY NAME PARTY NAME 1. Basic Parental Child Support Obligation (Line D.9. from above) 2. Total Child Support Adjustments (+/-) (Line E.7. from above) 3. Adjusted Subtotal (Line F.1. +/- Line F.2.) 4. Equal Parenting Time Obligation (EPT Worksheet or Shared Expense Formula) 5. Enforcement Fee Allowance** Percentage % (Applied only to Nonresidential Parent) Flat Fee $ ((Line F.3. x Collection Fee %) x.5) or (Monthly Flat Fee x.5) (+) (+) 6. Net Parental Child Support Obligation (Line F.3. + Line F.4.) **Parent with nonprimary residency. Use local percentage. Prepared By (Signature) Judge/Hearing Officer Signature Prepared By (Print Name) Date Submitted Date Approved 35

7 Combined Child Support Schedules ONE CHILD FAMILIES: CHILD SUPPORT SCHEDULE Dollars Per Month Per Child ($ Per Child) Combined 36 ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group APPENDIX II Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income

8 Combined ONE CHILD FAMILIES: CHILD SUPPORT SCHEDULE (Continued) Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income *2014 Poverty Level is $1,650 To determine child support at higher income levels: Age 12-18: Raise income to the power and multiply the result by Age 6-11: Determine child support for Age and then multiply by 0.92 Age 0-5: Determine child support for Age and then multiply by

9 Combined TWO CHILD FAMILIES: CHILD SUPPORT SCHEDULE Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income

10 Combined TWO CHILD FAMILIES: CHILD SUPPORT SCHEDULE (Continued) Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income *2014 Poverty Level is $2,000 To determine child support at higher income levels: Age 12-18: Raise income to the power and multiply the result by Age 6-11: Determine child support for Age and then multiply by 0.92 Age 0-5: Determine child support for Age and then multiply by

11 Combined THREE CHILD FAMILIES: CHILD SUPPORT SCHEDULE Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income

12 Combined THREE CHILD FAMILIES: CHILD SUPPORT SCHEDULE (Continued) Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income *2014 Poverty Level is $2,350 To determine child support at higher income levels: Age 12-18: Raise income to the power and multiply the result by Age 6-11: Determine child support for Age and then multiply by 0.92 Age 0-5: Determine child support for Age and then multiply by

13 Combined FOUR CHILD FAMILIES: CHILD SUPPORT SCHEDULE Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income

14 Combined FOUR CHILD FAMILIES: CHILD SUPPORT SCHEDULE (Continued) Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income *2014 Poverty Level is $2,700 To determine child support at higher income levels: Age 12-18: Raise income to the power and multiply the result by Age 6-11: Determine child support for Age and then multiply by 0.92 Age 0-5: Determine child support for Age and then multiply by

15 Combined FIVE CHILD FAMILIES: CHILD SUPPORT SCHEDULE Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income

16 Combined FIVE CHILD FAMILIES: CHILD SUPPORT SCHEDULE (Continued) Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income *2014 Poverty Level is $3,050 To determine child support at higher income levels: Age 12-18: Raise income to the power and multiply the result by Age 6-11: Determine child support for Age and then multiply by 0.92 Age 0-5: Determine child support for Age and then multiply by

17 Combined SIX CHILD FAMILIES: CHILD SUPPORT SCHEDULE Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income

18 Combined SIX CHILD FAMILIES: CHILD SUPPORT SCHEDULE (Continued) Dollars Per Month Per Child ($ Per Child) Combined ($ Per Child) Combined ($ Per Child) Gross Age Group Gross Age Group Gross Age Group Monthly Age Age Age Monthly Age Age Age Monthly Age Age Age Income Income Income *2014 Poverty Level is $3,350 To determine child support at higher income levels: Age 12-18: Raise income to the power and multiply the result by Age 6-11: Determine child support for Age and then multiply by 0.92 Age 0-5: Determine child support for Age and then multiply by

19 Domestic Relations Affidavit APPENDIX III IN THE JUDICIAL DISTRICT COUNTY, KANSAS IN THE MATTER OF ) ) ) Party Name ) ) and ) Case No. ) ) ) Party Name ) DOMESTIC RELATIONS AFFIDAVIT OF (name) 1. Party Name Residence Party Name XXX-XX- Birth Month/Year Social Security Number Telephone 2. Party Name Residence Party Name XXX-XX- Birth Month/Year Social Security Number Telephone 3. Date of Marriage: 4. Number of Marriages: Party Name Party Name 5. Number of children of the relationship: 6. Names, Social Security Numbers, the month and year of each child s birth and ages of minor children of the relationship: Name Social Security Number Birth Age Custodian XXX-XX- Month /Year 48

20 7. Names, Social Security Numbers, and ages of minor children of previous relationships and facts as to custody and support payments paid or received, if any. Social Support Paid Name Security No. Age Custodian Payment or Rec d XXX-XX- $ $ $ $ 8. Party Name is employed by Party Name is employed by with monthly income as follows: (Name and address of employer) A. Wage Earner Party Name Party Name 1. Gross Income $ $ 2. Other Income $ $ 3. Subtotal Gross Income $ $ 4. Federal Withholding $ $ (Claiming exemptions) 5. Federal Income Tax $ $ 6. OASDHI $ $ 7. Kansas Withholding $ $ 癢 皆 皤 盇 盟 眂 眦 睂 睃 睹 睺 瞐 瞮 矌 $ 9. Net Income $ $ B. Self-Employed Party Name Party Name 1. Gross Income from self-employment $ $ 2. Other Income $ $ 3. Subtotal Gross Income $ $ 4. Reasonable Business Expenses $ $ (Itemize on attached exhibit) 5. Self-Employment Tax $ $ 6. Estimated Tax Payments $ $ (Claim exemptions) 7. Federal Income Tax $ $ 8. Kansas Withholding $ $ 9. Subtotal Deductions $ $ 10. Net Income $ $ (Line B.3. minus Line B.9.) Pay period: Party Name Party Name 49

21 9. The liquid assets of the parties are: Joint or Individual Item Amount (Specify) A. Checking Accounts (Do not list account numbers): $ $ B. Savings Accounts (Do not list account numbers): $ $ C. Cash Party Name $ Party Name $ D. Other $ $ 10. The monthly expenses of each party are: (Please indicate with an asterisk all figures which are estimates rather than actual figures taken from records.) A. Party Name Party Name Item (Actual or Estimated) (Actual or Estimated) 1. Rent (if applicable)* $ $ 2. Food $ $ 3. Utilities/services: Trash Service $ $ Newspaper $ $ Telephone $ $ Mobile Phone $ $ Cable $ $ Gas $ $ Water $ $ Lights $ $ Other $ $ 4. Insurance: Life $ $ Health $ $ Car $ $ House/Rental $ $ Other $ $ 5. Medical and dental $ $ 6. Prescriptions drugs $ $ 7. Child care (work-related) $ $ 8. Child care (non-work-related) $ $ 9. Clothing $ $ 10. School expenses $ $ 11. Hair cuts and beauty $ $ 12. Car repair $ $ 13. Gas and oil $ $ 14. Personal property tax $ $ 50

22 Party Name Party Name Item (Actual or Estimated) (Actual or Estimated) 15. Miscellaneous (Specify) $ $ $ $ $ $ $ $ 16. Debt Payments (Specify) $ $ $ $ $ $ $ $ Total $ $ *Show house payments, mortgage payments, etc., in Section 10.B. B. Monthly payments to banks, loan companies or on credit accounts: (Indicate actual or estimated monetary amount in each column; use asterisk for secured.) DO NOT LIST ANY PAYMENTS INCLUDED IN PART 10.A ABOVE. When Amount of Date of Responsibility Creditor Incurred Payment Last Payment Balance Party Name Party Name $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Subtotal of Payments $ $ Total $ $ C. Total Living Expenses Party Name (Actual or Estimated) Party Name (Actual or Estimated) 1. Total funds available to $ $ Both Parties (from No. 8) 2. Total needed $ $ (from No. 10.A and B) 3. Net Balance $ $ 4. Projected child support $ $ 51

23 D. Payments or contributions received, or paid, for support of others. Specify source and amount. Source Party Name Party Name (+/-) $ $ (+/-) $ $ (+/-) $ $ (+/-) $ $ 11. How much does the party who provides health care pay for family coverage? $ per. How much does it cost the provider to furnish health insurance only on the provider? $ per. FURNISH THE FOLLOWING INFORMATION IF APPLICABLE. 12. Income and financial resources of children. Income/Resources Amount $ $ $ $ 13. Child support adjustments requested. Party Name Party Name Long Distance Parenting Time Costs $ $ Parenting Time Adjustments $ $ Income Tax Considerations $ $ Special Needs $ $ Support Beyond Age of Majority $ $ Overall Financial Condition $ $ 14. All other personal property including retirement benefits (including but not limited to qualified plans such as profit-sharing, pension, IRA, 401(k), or other savings-type employee benefits, nonqualified plans, and deferred income plans), and ownership thereof (joint or individual), including policies of insurance, identified as to nature or description, ownership (joint or individual), and actual or estimated value. $ $ $ $ Amount Joint or Individual (Specify) 52

24 THE FOLLOWING NEED NOT BE FURNISHED IN POST JUDGMENT PROCEDURES. 15. List real property identified as to description, ownership (joint or individual) and actual or estimated value. Property Description Ownership Actual/Estimated Value 16. Identify the property, if any, acquired by each of the parties prior to marriage or acquired during marriage by a will or inheritance. Source of Actual/ Property Description Ownership Ownership Estimated Value 17. List debt obligations, including maintenance, not listed in Section 10.A or 10.B above, identified as to name or names of obligor or obligors and obligees, balance due and rate at which payable; and, if secured, identify the encumbered property. Debt Balance Payment Encumbered Obligation Obligor Obligee Due Rate Property 53

25 18. List health insurance coverage and the right, pursuant to ERISA , 29 U.S.C (1986), to continued coverage by the spouse who is not a member of the covered employee group. Health Insurance COBRA Continuation Yes No Unknown I declare under penalty of perjury under the laws of the State of Kansas that the foregoing is true, correct and complete. Executed on the day of, 20. Name (Print): Signature 54

26 IN THE DISTRICT COURT OF COUNTY, KANSAS DIVISION ) Case No. Party Name ) ) vs. ) ) Document No. ) Party Name ) SHORT FORM DOMESTIC RELATIONS AFFIDAVIT OF (name) To be used ONLY with post-judgment Motions to Establish or Modify Child Support. 1. Your Name: First Middle Last Residence: Address City ST Zip Year of Birth: Last Four Digits of SSN: XXX-XX- Phone 2. Name(s), last four digits of SSN(s), year of birth, and age(s) of minor children of the marriage/relationship: Name SSN Year of Birth Age XXX-XX- XX-XX- XXX-XX- XX-XX- XXX-XX- XX-XX- XXX-XX- XX-XX- 3. Name(s), last four digits of SSN(s), and year of birth of minor children of previous marriage/relationship(s) and facts as to custody and support payments paid or received, if any. Name Name of Custodian SSN YOB Support Pd/Rec XXX-XX- XX-XX- $ XXX-XX- XX-XX- $ XXX-XX- XX-XX- $ XXX-XX- XX-XX- $ XXX-XX- XX-XX- $ 4. You are employed by: Name: Address: City, ST, Zip: 55

27 5. Monthly income: A. Wage Earner, Gross Income $ B. Self-Employed, Gross Income $ C. Reasonable Business Expense $ D. Self-Employment Tax $ 6. Work Related Child Care Expenses: A. Weekly Cost During Summer Name and Address of Provider $ B. Weekly Cost During School Year Name and Address of Provider $ 7. Party Name Party Name provides Health Insurance for child(ren). A. Name and Address of Health Insurance Plan: B. Person(s) insured on plan: Monthly cost of health insurance: $ Monthly cost of dental insurance: $ Monthly cost of vision insurance: $ Monthly cost of drug prescription insurance: $ Increased cost of adding child(ren) to the plan:$. 8. Party Name Party Name claims child(ren) for income tax purposes. You file taxes: Single Head of Household Joint Other 9. Child Support Adjustments requested (documentation to support requested adjustments must be attached): Long Distance Parenting Time Adjustment Special Needs Parenting Time Adjustment Income Tax Adjustment Agreement Past Minority Overall Financial Condition 10. The following documents must be attached. Social Security numbers and dates of birth must be removed from the documents prior to filing with the court. Current Pay Stub Last Year s Tax Return including schedules W-2 Written Proof of Day Care Cost Written Proof of Insurance Costs I declare under penalty of perjury under the laws of the State of Kansas that the foregoing is true, correct and complete. Executed on the day of, 20. Name (Print): Signature: 56

28 Interstate Pay Differential APPENDIX IV Adjustments for differences in interstate pay in various locations are computed using the state average weekly pay. This appendix provides a table for the fourth quarter of 2014, average weekly wages by state. In calculating the Interstate Pay Differential, use the most recent schedule from the web page. Updates for this information are distributed quarterly and can be obtained by going to the Internet address for the United States Bureau of Labor Statistics: In the search bar in the upper right corner of the website, search for covered establishments employment and wages by states. Currently, the table is labeled Table 3. Covered establishments, employment, and wages by state. The latest table (at the time of publication of this document) is found at the following link: The average weekly wage is currently provided in the fourth column of the table. The average weekly pay table reports the average weekly wage for all workers covered by state and federal unemployment insurance (UI). Employers subject to federal and state unemployment law report pay information quarterly to the Department of Labor. Payroll data includes wages, bonuses, cash value meals and lodging when supplied, tips and other gratuities, and, in some states, employer contribution to certain deferred compensation plans, such as 401(k) plans and stock options. Employment and wage data reported by the Department of Labor is classified in accordance with the 1987 Standard Industrial Classification (SIC) Manual. This classification manual is updated every three years. To compute the Interstate Pay Differential, develop a value by dividing the average weekly wage in Kansas (KS) by the average weekly wage of the new state. Average weekly wages for each state are found in the table attached to this appendix and may be higher or lower than the Kansas average weekly wage. EXAMPLE ONE: Using the Interstate Pay Differential, a parent living in Alaska and earning $3, per month would have a gross monthly income for Kansas child support purposes of $2,413. To get the correct multiplier, divide the Kansas weekly wage by the non-kansas weekly wage and then multiply by the non-residential parent s monthly income. Kansas weekly average $ Alaska weekly average $1, =

29 $3, x.8043 $2, Kansas value as adjusted by Interstate Pay Differential. (Round value up to nearest dollar.) The Alaska parent s income of $3,000 is multiplied by the value for an adjusted income of $2,413. EXAMPLE TWO: Using the Interstate Pay Differential, a parent in Idaho earning $3, per month would have a gross monthly income for Kansas child support purposes of $3,280. To get the correct multiplier, divide the Kansas weekly wage by the non-kansas weekly wage and then multiply by the non-residential parent s monthly income. Kansas weekly wage $855 $782 for Idaho weekly wage = $3, x $3, Kansas value as adjusted by the Interstate Pay Differential. (Round value up to nearest dollar.) The Idaho parent s income of $3,000 is multiplied by the factor of for an adjusted income of $3,280. The income modified to a Kansas value is entered on line A.1 or B.1 of the Child Support Worksheet. 58

30 National and State Average Weekly Pay and Differential of Each State s Average Weekly Pay Compared to Kansas Average Weekly Pay Source: State Average Weekly Pay (4th Quarter) 2014 United States $1,035 Alabama 881 Alaska 1,063 Arizona 926 Arkansas 807 California 1,209 Colorado 1,066 Connecticut 1,278 Delaware 1,049 District of Columbia 1,696 Florida 911 Georgia 958 Hawaii 908 Idaho 782 Illinois 1,089 Indiana 846 Iowa 870 Kansas 855 Kentucky 836 Louisiana 923 Maine 826 Maryland 1,113 Massachusetts 1,315 Michigan 984 Minnesota 1,024 Mississippi 747 Missouri 891 Montana 794 Nebraska 837 Nevada 899 New Hampshire 1,081 New Jersey 1,211 59

31 State Average Weekly Pay (4th Quarter) New Mexico 850 New York 1,321 North Carolina 890 North Dakota 1,050 Ohio 922 Oklahoma 876 Oregon 928 Pennsylvania 1,013 Rhode Island 1,003 South Carolina 817 South Dakota 791 Tennessee 927 Texas 1,070 Utah 872 Vermont 882 Virginia 1,057 Washington 1,082 West Virginia 818 Wisconsin 894 Wyoming 952 Puerto Rico 556 Virgin Islands

32 APPENDIX V Income Tax Considerations Section A - Dependent s Exemption And Child Tax Credit Throughout this appendix, the term custodial and noncustodial parents are used to comply with tax law. In all other sections in the Kansas Child Support Guidelines, these terms have been updated to comply with the current Kansas law. Section A.I Dependent s Exemption The parties are reminded that the Affordable Care Act requires every American to have health insurance. In many cases, there is a penalty assessed (and paid when income taxes are filed) for failure to maintain health insurance for oneself or one s dependents. Note that regardless of which party is ordered by the court to maintain the health insurance, the penalty for a child not having health insurance will be assessed by the IRS against the individual who claims the child as a dependency exemption. The parties are advised to take this into consideration when determining dependency and health insurance issues. Generally, the parent with the higher income will benefit more from the tax exemption. The parties should be encouraged to maximize tax benefits and adjust child support equitably. Frequently, the parties agree to alternate the exemption. If the custodial parent agrees to alternate the exemption, the additional tax benefit to the noncustodial parent should be shared with the custodial parent equitably. If the noncustodial parent agrees to allow the custodial parent to claim the exemption in years that the noncustodial parent was entitled to the exemption, the additional tax benefit to the custodial parent should be shared with the noncustodial parent equitably. If the custodial parent elects not to alternate the income tax exemption for the minor child by executing IRS Form 8332 or a substantially similar form, the court shall consider the actual economic effect of the failure to alternate the exemption on the noncustodial parent and may adjust the noncustodial parent s monthly child support accordingly. The party requesting the income tax consideration adjustment shall have the burden of proof. The amount should be entered on Line E.3. 61

33 The following discussion and example reflects 2015 tax laws. Although the narrative is in the context of the value to the noncustodial parent, it could also be applicable to the custodial parent as discussed above. For 2015, the federal income tax exemption was $4,000 per person and the Kansas exemption was $2,250. The value of the exemption to the noncustodial parent may be calculated by multiplying the applicable exemption amount by the noncustodial parent s applicable highest marginal rate at both the federal and Kansas levels. The combined federal and Kansas amount should be divided by 12 to arrive at the monthly amount. A portion of this amount would then be allocated to the noncustodial parent based upon his/her share of the combined income (Line D.2.). If the noncustodial party is self-employed and has no other outside income, the applicable Kansas rate will be 0 under 2015 Kansas tax law. If the noncustodial party is a member of a Limited Liability Corporation (LLC) and receives income from the LLC that is not W2 income, the applicable Kansas rate for that income will be 0. If the noncustodial party is a member of an S- Corporation, any income flowing to the party as a distribution from the corporation, rather than as wages through a W2, will have an applicable Kansas rate of 0. Example: A noncustodial parent has one minor child and has an adjusted gross income in 2015 of $22,750 and assumes the noncustodial parent is in a 15% marginal federal income tax rate and a 4.6% Kansas marginal income tax rate. Accordingly, if the custodial parent will not alternate the exemption, the calculation for the value of the exemption would be calculated as $4,000 x.15 for the federal amount and $2,250 x.046 for the Kansas rate. The resulting total, $704, would be divided by 12 to arrive at the monthly value of $59, which should then be multiplied by 68% (the noncustodial parent s share of the combined income) producing an adjustment to the guideline child support of a monthly credit of $40 to the noncustodial parent. Section A.II Federal Child Tax Credit Federal income tax law allows a tax credit for parents with a dependent child under the age of 17 on the last day of the tax year. The credit in 2015 is $1,000 for each qualifying child. The credit is only available for a child 16 or younger on the last day of the tax year in question. If the child turns 17 on or before December 31, no tax credit may be claimed as a dependent. If the right to claim a qualifying child as a dependent is not shared between the parents, the monthly value of the tax credit should be included in the income tax considerations adjustment. 62

34 For 2015, the monthly value of the tax credit is $1, for each qualifying child, or $83. If the right to claim the child as a dependent (and the credit) is not shared between the parents, then the noncustodial parent s monthly child support should be decreased by the proportionate share of the combined income on Line D.2 of the child support worksheet (increased if the noncustodian claims the child as a dependent) in addition to any other income tax adjustment amounts. Section B Head of Household Adjustment If the custodial parent utilizes the standard deduction and files as head of household, a tax benefit results to the custodial parent that, absent custody of the child, might not otherwise be available. Such tax benefit received by the custodial parent can be measured by the difference in the standard deduction for head of household over the standard deduction for a single taxpayer multiplied by the applicable marginal federal and state income tax rates. Please note that the tax brackets for taxpayers filing as head of household differ than those for taxpayers filing as single or married filing jointly. In addition, the custodial parent is given an additional exemption at the Kansas level due to filing as a head of household. The benefit of the additional exemption is calculated by multiplying the custodial parent s marginal Kansas income tax rate by the Kansas exemption amount. If the custodial parent s income is from self-employment, the Kansas tax rate on this income is zero. The total of the standard deduction and additional exemption benefits should be divided by 12 to arrive at the monthly amount. If the court decides it is appropriate to share the tax benefits of this deduction, the noncustodial parent s credit should not exceed his/her proportionate share of the combined income on Line D.2 of the child support worksheet. Example: A custodial parent has one minor child and has an adjusted gross income in 2015 of $22,750 and assumes the custodial parent is in a 15% marginal federal income tax rate and a 4.6% marginal Kansas income tax rate. The difference in the Federal standard deduction for head of household over that for a single taxpayer is $2,950 (9,250 - $6,300 = $2,950). This difference multiplied by the custodial parent s federal marginal income tax rate of 15% results in an income tax benefit of $443. The difference in the Kansas standard deduction for head of household over that for a single taxpayer is $2,500 ($5,500 - $3,000 = $2,250). This difference multiplied by the custodial parent s marginal Kansas income tax rate of 4.6% results in a benefit of $115, for a combined federal and Kansas standard deduction benefit of $558. Because the custodial parent filed as head of household, the parent was allowed an additional Kansas exemption of $2,250, for an income tax benefit of $104 ($2,250 x.046 = $104). The total income tax benefit for filing as head of household is thus $662. The noncustodial parent s proportionate share of the combined income is 68% and this percentage should be applied to the head of household tax benefit ($662 x.68 = $450). This amount is divided by 12 to arrive at a monthly credit of $38. 63