The Status of Residential Credit

The 2011 Child Support Schedule Workgroup Final Report, issued in September 2011, was passed along to the Legislature for possible legislation.   HB 2279 was proposed as "Implementing changes to child support based on the child support schedule work group report."   And that was true, at least in the initial bill proposed on January 11th.  However, on January 31st SHB 2279 deleted new Sections 7 and 8 from the proposed legislation, thus apparently rejecting the Workgroup's following recommendation regarding residential credit.   

The Workgroup makes the following recommendations regarding the residential schedule credit:

The Workgroup recommends that there should be a residential schedule credit to adjust the transfer payment, and that credit should be based on the number of overnights. There should be a mechanism to adjust the credit when necessary. The credit should be available in both the courts and the administrative forum, and the credit should not be granted if doing so would result in insufficient funds in the custodial parent’s household.

The Workgroup recommends that there should be an adjustment of the child support obligation – not a deviation – based on the child’s residential schedule. This concept is referred to as a residential schedule credit.70 While recognizing that there are many approaches to calculating a residential schedule credit, the Workgroup recommends that the easiest method for determining the credit or adjustment would be a method based on the number of overnights which the child spends with each parent. Although there are some family situations which would not fit nicely into the “overnights” scenario, the Workgroup members believed that the majority of cases would be amenable to such a calculation.   [Page 23, Worksheet Study Group Report]

Left in this form, the proposed legislation would retain existing RCW 26.19.075(1)(d), thus eviscerating any hope that a mechanism other than arguing for  a "deviation" might be available for obtaining a residential credit.

 

IRS & Innocent Spouse Rules

The IRS has proposed new rules to qualify for innocent spouse relief.   The rules will streamline the procedure, provide a broader view of how financial control and abuse may have affected the party claiming innocent spouse eligibility, and allow for refunds in certain cases.     Notice 2012-8

Changing Child Support

On January 11th, eight House Democrats introduced a bill that would change child support in Washington State.   A brief summary of HB 2279  describes the changes as (1) adopting a new economic table that does not differentiate amounts based on the children's ages;  (2) requiring an adjustment of the standard calculation based on "children not before the court" and shared residential schedules; (3) amending the postsecondary educational support statute to, among other things, require the court to consider any grants or scholarships awarded to the child; and (4) clarifying the statute on self-support reserve."    Additional information is available at Complete Bill Analysis.

Help For Parents

Up to Parents is a  resource for parents experiencing difficulties in their relationship or coping with child custodial issues during divorce or separation.   Included in this very informative free website are numerous child-centered articles and videos, frequently asked questions, and interactive questionnaire and even an input form for use in mediation.   Certainly worth checking out! 

Dependency Tax Exemption

The US Tax Court ruled against a father seeking to claim his children as personal tax exemptions on his 2007 tax return.   Arguing that he paid "all of their financial support" and was only temporarily absent from the family home, he couldn't overcome the requirement of being with the children more than half the time.   It didn't help that his wife hadn't signed a Sec 152(e) release and that she filed a conflicting return claiming the exemptions.   Alarcon v IRS (US Tax Court, 10/17/2011)

Recommendations To The Washington State Legislature For Washington’s Child Support Schedule

Final Report of 2011 Child Support Schedule Workgroup

Final Recommendations    (excerpts) - September 2011

The Legislature should adopt a new Economic Table, which is based on more current data, is presumptive to $12,000 combined monthly net income, and does not differentiate between age groups of children.

There should be a presumptive adjustment of support, not just a deviation, when a parent has children not before the court.   The adjustment should be calculated using the Whole Family Formula.   The court may not grant the adjustment if doing so would leave “insufficient funds” in the household of the custodial parent. 

There should be a residential schedule credit adjustment, not just a deviation, based on the number of overnights a child spends with each parent.   The residential schedule credit should be available in both the superior courts and the administrative forum, adjusted when the child’s time with the parents varies from that set out in the child support order granting the credit.  The residential schedule credit should not be considered a deviation, should not be available if the adjustment would result in insufficient funds in the custodial parent’s household, not be available if the CP’s net income before receiving the support transfer payment is at or below 125% of the federal poverty level guidelines for one person; or not be available if the child is receiving TANF.

The statute regarding postsecondary educational support should be amended to provide more guidance on when to order postsecondary educational support;  how to set the amounts;  how/when it may be suspended and then reinstated; and when/how it may be terminated.

The statutory references to the self-support reserve should be clarified to provide that the self-support reserve is 125% of the federal poverty level for a one-person family.

Perjury Conviction

On August 1, 2011 the Washington State Court of Appeals, Division One, affirmed a 2010 Snohomish County conviction of a mother who made false statements of an alleged assault by her son's father during a visitation exchange.   State v Prigger.