Quite the Pair: Daycare and Deductions
Indiana Child Support calculations are completed by a simple math algorithm. The Indiana Supreme Court had determined how much of the joint weekly income of two parents should go toward a child. The Indiana Supreme Court has created a child support obligation website where parties can attempt to calculate their own specific child support obligation.
Once both parents’ weekly income is inputted into the Indiana Child Support calculator, there are a few items that will increase the total cost of support, but are also subtracted out of the total support paid. The most common items are insurance payments for the child and any daycare costs that may be paid for the child.
A parent who is paying health insurance and daycare should receive a dollar for dollar credit against any support obligation that might exist. This can be a beneficial way to decrease a child support payment, but it does not necessarily decrease the amount of money the paying parent is putting toward the child. Many times it can create a situation where the parent paying the insurance and daycare is paying more out of pocket than if they allowed the other parent to pay those obligations. However, under certain circumstances, it may still be beneficial for tax purposes to pay a child’s insurance or daycare so a parent can decrease their overall tax liability. Given how these expenses may affect an individual’s tax liability, it is always important to consult an experienced family law attorney regarding these choices.
Contact us today if you have questions or believe you are in need of caring, compassionate, and capable family law representation. We stand ready to provide our clients with trusted representation and accurate information regarding the law and its application to their individualized case. Act now and contact us today at (317) 857-0160.