I spent an hour discussing this with our lawyer the other day, trying very hard to understand how child support calculations work. I was shocked that my original straight-forward belief was incorrect.
I thought I'd share what I learned during the conversation, because I know many of us share the same "last year's income = current support amount" belief, which is in fact incorrect. (Go figure!)
The way our lawyer explained things...
Child support is not necessarily calculated in the way in which we always thought, that is that in June, you look at your total income on your previous year's tax return, and in July you adjust the amount based on that income.
The courts look at child support on a yearly (January-December) and "current" basis.
For example, if in 2009 your income on your 2008 notice of assessment was $30,000 and as a result you were paying child support based on $30,000 in 2009... then when you obtain your 2009 income in 2010, and it shows that you made MORE than $30,000 in 2009... you will be in arrears as what you paid in 2009 did not match your actual 2009 income.
Similarly, if your 2009 notice of assessment shows that you made LESS than $30,000... you will have overpaid and *should* receive a credit in child support.
Does that make any sense to you?
Basically, the courts want you to pay in a given year the amount you should be paying based on your "current" income that year. And since "current" income is not always available, judges may project an income and base your child support on that (from your most recent paystub) or they can use your previous year's income and make adjustments in the future to see whether or not you paid accurately.
Personally, this to me makes no sense.
I always thought that you used last year's income tax total income, and paid according to that, and each year you adjusted the support based on the next income tax return.
Supposedly I was wrong.
Has anyone else been explained child support calculations in this way?
I thought I'd share what I learned during the conversation, because I know many of us share the same "last year's income = current support amount" belief, which is in fact incorrect. (Go figure!)
The way our lawyer explained things...
Child support is not necessarily calculated in the way in which we always thought, that is that in June, you look at your total income on your previous year's tax return, and in July you adjust the amount based on that income.
The courts look at child support on a yearly (January-December) and "current" basis.
For example, if in 2009 your income on your 2008 notice of assessment was $30,000 and as a result you were paying child support based on $30,000 in 2009... then when you obtain your 2009 income in 2010, and it shows that you made MORE than $30,000 in 2009... you will be in arrears as what you paid in 2009 did not match your actual 2009 income.
Similarly, if your 2009 notice of assessment shows that you made LESS than $30,000... you will have overpaid and *should* receive a credit in child support.
Does that make any sense to you?
Basically, the courts want you to pay in a given year the amount you should be paying based on your "current" income that year. And since "current" income is not always available, judges may project an income and base your child support on that (from your most recent paystub) or they can use your previous year's income and make adjustments in the future to see whether or not you paid accurately.
Personally, this to me makes no sense.
I always thought that you used last year's income tax total income, and paid according to that, and each year you adjusted the support based on the next income tax return.
Supposedly I was wrong.
Has anyone else been explained child support calculations in this way?
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