Ask Experts Questions for FREE Help !
Ask
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #1

    Jul 21, 2012, 07:25 AM
    How does child support affect my income taxes?
    I have recently started paying for child support. I'm paying $331 a month because my child's father makes half of what I do. We are paying my son's paternal grandmother. Now that I have providing support to my child I'm curious how it will affect my income taxes at the end of the year. Is child support tax exempt? Since I'm paying more and providing health insurance for my son does that mean that I'm providing 1/2 of his yearly support and if so can I claim him on my taxes at the end of the year?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #2

    Jul 21, 2012, 07:34 AM
    Quote Originally Posted by Skylertrip View Post
    I have recently started paying for child support. I'm paying $331 a month because my childs father makes half of what I do. We are paying my son's paternal grandmother. Now that I have providing support to my child I'm curious how it will affect my income taxes at the end of the year. Is child support tax exempt? Since I'm paying more and providing health insurance for my son does that mean that I'm providing 1/2 of his yearly support and if so can I claim him on my taxes at the end of the year?
    Depends on the State and the Court Order. How does the Order address the situation?

    The paternal grandmother has custody but both you and the father pay support to her? Something else?

    I'm not sure that $331/month plus health insurance is more than half of what it takes to raise a child when you consider housing, utilities, food, insurance -

    Here's a research starting place - Qualifying Child of More Than One Person.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #3

    Jul 21, 2012, 07:38 AM
    The grandparents do not pay rent or have a mortgage, they live in the grandfather's mother's home, they do not have a car payment and neither one has a working income. There was no order addressing the situation. I have contested the amount that I will be paying so we will be seen in court over the situation. I was just curious cause I know that child support is is removed via garnishment from my pay and that it is tax sheltered on the grandparents end.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #4

    Jul 21, 2012, 07:39 AM
    I also have proof from a previous sworn financial statement that they do not have overhead on their home.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #5

    Jul 21, 2012, 07:43 AM
    Quote Originally Posted by Skylertrip View Post
    The grandparents do not pay rent or have a mortage, they live in the grandfather's mother's home, they do not have a car payment and neither one has a working income. There was no order addressing the situation. I have contested the amount that I will be paying so we will be seen in court over the situation. I was just curious cause I know that child support is is removed via garnishment from my pay and that it is tax sheltered on the grandparents end.

    So there's another party involved - Great grandparents, Grandparents, Mother, Father - ?

    At any rate when you go to Court ask that the tax consequences be addressed. That's the only guaranteed way to know who can claim the child.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #6

    Jul 21, 2012, 07:48 AM
    Its myself, biological mother, biological father and the grandparents. I went to the support office yesterday and they would not address this issue. They said just deal with it. I'm just curious that if I'm paying $461 which breaks down to $331 in support payments and $130 in insurance which was explained to me as 60% of the support order then how to I obtain information on how much it is actually costing them to raise my son. If they have no overhead then their cost of living goes down and well the cost to support him goes down.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #7

    Jul 21, 2012, 07:50 AM
    Quote Originally Posted by Skylertrip View Post
    Its myself, biological mother, biological father and the grandparents. I went to the support office yesterday and they would not address this issue. They said just deal with it. I'm just curious that if I'm paying $461 which breaks down to $331 in support payments and $130 in insurance which was explained to me as 60% of the support order then how to I obtain information on how much it is actually costing them to raise my son. If they have no overhead then their cost of living goes down and well the cost to support him goes down.

    This is an issue for a Judge, not a Support Collection (or other support) office.

    It needs to be addressed OR you can all file and let IRS sort it out. I don't recommend it but it's a sort-of solution.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #8

    Jul 21, 2012, 07:51 AM
    The grandparents as I said before do not pay for rent or a mortgage, they do not have a car payment or pay for health insurance and they do not have my son in a private school. I know how much it costs to raise and house my 2 year old daughter and it just seems ridiculous that the grandparents between myself and the biological father are receiving over $600 a month to take "care" of my son.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #9

    Jul 21, 2012, 08:00 AM
    It was recently estimated that raising a child to 18 would cost over $280,000. That breaks down to over $15K per year. $600/month is $7200 a year. Now, do you want to tell us again, how that is ridiculous?
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #10

    Jul 21, 2012, 08:03 AM
    Under what circumstances is that? I can tell you that my parents were self employed and we were poor and there is no way in hell that my parents spent $45,000 a year on raise three children! They didn't even make that much. So yes it ridiculous.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #11

    Jul 21, 2012, 08:13 AM
    How old are you? That number has been going up every year. So it may have been a lot less when you were a child. Also the circumstances are for a single child. Having multiple children doesn't mean you multiply by 3. So $600/mth is not ridiculous.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #12

    Jul 21, 2012, 08:13 AM
    Quote Originally Posted by Skylertrip View Post
    Under what circumstances is that? I can tell you that my parents were self employed and we were poor and there is no way in hell that my parents spent $45,000 a year on raise three children! They didn't even make that much. So yes it ridiculous.

    Unless you were born yesterday this argument doesn't apply.

    Anyway - back to the topic. How much have you paid in support over the past 6 years?

    Are you in a State where support is a percentage or is there a forumula?
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #13

    Jul 21, 2012, 08:17 AM
    Colorado and they denied my child support for the last 6 years.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #14

    Jul 21, 2012, 08:20 AM
    It wasn't until the grandfather lost his job and the grandmother still refuses to work after 6 years for them to actually file. I don't understand how an indigent household can support a child. They have NO income!
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #15

    Jul 21, 2012, 08:23 AM
    It's a formula, they take both parents income and deduct support for my daughter which was only $364 a month and then they deduct the health insurance. Without my second child and the health ins. I would be paying over $1000 a month in support. They said it was income based but the woman processing the paperwork couldn't answer any of my questions.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #16

    Jul 21, 2012, 08:24 AM
    Quote Originally Posted by Skylertrip View Post
    It wasn't until the grandfather lost his job and the grandmother still refuses to work after 6 years for them to actually file. I don't understand how an indigent household can support a child. They have NO income!

    Maybe the grandmother is too busy raising your child to work. Lots of mothers who are raising a child or children don't work. The fact that "grand" comes before "mother" doesn't change that.

    You seem to resent the very people who have kept your child from going from foster care home to foster care home.

    So - you are expecting them to raise your child without any financial help from you? Is that what I'm reading? I'm not sure what your argument is - the dollar amount of support or the fact that you are ordered to pay support.

    Why haven't you provided support in the last six years, voluntarily?

    For whatever reason I'm not understanding the situation.

    If you don't want to pay support allow the grandparents who have raised the child to adopt him/her.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #17

    Jul 21, 2012, 08:33 AM
    Its not a matter of the money. I don't care about the money. I care about my son whom they've kept me from for years. I do everything in my power to have my parental rights restored and I'm denied. I send them checks in the mail they do not cash. I give them health insurance, clothes, food, I provide a safe and loving home for my son. I've never not supported him. Even with a court ordered visitation schedule they continually deny me visitations. I know that you may never understand what exactly I'm speaking of. I'm just trying to find out what my rights are as far as the legal financial end goes. If I'm providing support to him and they are not, can not financially because they have NO income then how does it break down when it comes to taxes. The rest of the bull is just that and doesn't matter. As far as adoption they won't because they then won't receive support for my son which means one or both would need to get employment and with the grandfather being 1 year away from retirement that's not something they will be doing.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #18

    Jul 21, 2012, 08:49 AM
    Quote Originally Posted by Skylertrip View Post
    Its not a matter of the money. I don't care about the money. I care about my son whom they've kept me from for years. I do everything in my power to have my parental rights restored and I'm denied. I send them checks in the mail they do not cash. I give them health insurance, clothes, food, I provide a safe and loving home for my son. I've never not supported him. Even with a court ordered visitation schedule they continually deny me visitations. I know that you may never understand what exactly I'm speaking of. I'm just trying to find out what my rights are as far as the legal financial end goes. If I'm providing support to him and they are not, can not financially because they have NO income then how does it break down when it comes to taxes. The rest of the bull is just that and doesn't matter. As far as adoption they won't because they then won't receive support for my son which means one or both would need to get employment and with the grandfather being 1 year away from retirement that's not something they will be doing.

    For someone whose interest is not the money, that's what we keep coming back to. And, yes, I probably don't understand, never have lost/given custody of a child to grandparents.

    The way I'm reading this the Grandparents have no income (and also no expenses) but you don't want to pay so they won't have that $300+ a month and will raise the child with nothing.

    Here is how support is determined in Colorado - https://childsupport.state.co.us/sit...e=/cm:home.jsp

    If visitation is court ordered and denied, take them back to Court for contempt. It's just that easy. For that matter go back to Court and get custody of the child. It's not the child's decision nor is it theirs. A child advocate will be appointed to look at the situation from all angles, he/she will make a recommendation, the Judge will decide what is in the best interest of the child.

    You can't complain and then do nothing to change the situation when there ARE avenues available to you.

    If you get custody the support issue is moot and you can pursue your ex-husband for his share of support.

    And totally on another issue - I was raised by my Grandparents. Maybe the child's Grandparents didn't expect to be raising another child at their ages. I look back now and think how difficult it must have been for my Grandparents, raising what was pretty much another family after the first family left the nest, how much they sacrificed - and I never heard one single word of complaint.

    I'm not deaf to the issues of Grandparents raising Grandchildren.
    Skylertrip's Avatar
    Skylertrip Posts: 18, Reputation: 0
    New Member
     
    #19

    Jul 21, 2012, 09:02 AM
    Bias opinions mean nothing to me.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
    Uber Member
     
    #20

    Jul 21, 2012, 09:16 AM
    Quote Originally Posted by Skylertrip View Post
    Bias opinions mean nothing to me.

    It's biased, not bias. If you're going to be sarcastic at least get it right.

    You asked a legal question.

    The situation is - Grandparents of child have custody (I'm assuming there's a reason, although it is relatively unimportant to this question - other than your reluctance to try to get visitation); no support order until recently and little support until recently; child is 6; you pay $300+ plus health insurance; you think that $300+ is more than the Grandparents need to raise the child; who claims child as a dependent; you're in Colorado; there's a child support formula.

    When you go back to Court ask that that determination be made part of the order. My feeling is that the various parties will rotate. If it comes down to it IRS will decide.

    You got the legal answer. Get an Order addressing the exemption and/or get custody back and/or surrender the child for adoption by the Grandparents. If they won't let you see the child, go back to Court and ask that they be held in contempt.

    I don't know how much you're in the child's life now but in another year or two he/she won't have a clue who you are.

    I think the party's over.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Does the income of the parent with sole custody affect child support percentages? [ 2 Answers ]

I have sole custody of my 3 kids and was awarded a small amount ten years ago. My ex is behind on that obligation and has had a good paying job for the last four years. I have decided to take him back to court for unpaid support and an increase in current support, one of the children has turned...

Does a garnishment on my wages affect my income taxes? [ 1 Answers ]

If my wages were just garnished due to an unpaid student loan. Does this mean the company can take my money from income taxes as well? Even if it not the governments money but the school?

Dual residency pertaining custody & child support and also income taxes [ 1 Answers ]

I am currently living in Nevada. I am getting ready to move to California. I will still work in Nevada 3 days a week and live in California 4 days a week. I want to file with the family court in California for a court order for custody and child support for my 8 month old daughter. Can I...

May I File Taxes if Income only Consists of Child Support and SSI Benefits for my Chi [ 3 Answers ]

*This is actually for a friend of mine but I am going to write it in first person anyway.* Hopefully, someone will have some advise on my dilemma. I am unsure as to whether I need to feel taxes for 2007. Last year I was receiving cash aid up until August when I started receiving SSI Benefits...


View more questions Search