Child Support Directors Association of California in partnership with California Department of Child Support Services Guideline Calculator October 7, 2010 | Orange County, California

Suzie Marin Policy Analyst Program Policy – California Department of Child Support Services Janissa Boesch Certified Trainer Statewide Training Section – California Department of Child Support Services Orsolya F. Sabado Staff Attorney II Child Support Services Department – County of Los Angeles Guideline Calculator Workshop

I. Introduction Suzie Marin Policy Analyst Program Policy – California Department of Child Support Services

I. Introduction ■Guidelines for Setting Child Support Awards ✷ Federal Regulations ■California’s Statewide Child Support Uniform Guideline ✷ Principles ✷ Quadrennial Review ✷ Formula & Allocation

I. Introduction ■Child Support Formula Family Code § 4055(a) & (b)(1-3) ✷ CS = K [ HN - (H%) (TN) ] ■Allocation Per Child Family Code § 4055(b) ?

I. Introduction ■Certification ■Integration into CSE ■Ongoing Improvements ✷ Status of Defects and Design Changes ✷ Suggesting Changes:

II. Getting Help ■Public GC User Guide ✷ State of California Department of Child Support public website ■Internal GC User Guide ✷ California Child Support Central website

II. Getting Help Other References: ■Federal Regulations 45 CFR ✷ Government Printing Office (GPO) website ■Family Code Section ✷ California Law website

II. Getting Help ■Calling the Help Desk ✷ Who to call … ✷ When to call … ✷ What information to provide …

Questions

Janissa Boesch Certified Trainer Statewide Training Section – California Department of Child Support Services IV. Special Legal Issues

III. Learning the Basics ■Four Exercises 1.Zero-Support Calculations 2.Presumed Income Calculations 3.Low-Income Adjustment 4.Both Parents are NCPs ■Laws & Regulations ■Common Errors

■Exercise #1: Zero-Support Calculations ✷ CCR § Incarcerated Court-Ordered Rehabilitation Facility Public Assistance or SSI/SSP Medically-Verified as Totally and Permanently Disabled Institutionalized in Psychiatric Facility ✷ The NCP is … and has no other source of income ✷ CP/Other Parent Income Irrelevant III. Learning the Basics

■Exercise #2: Presumed-Income Calculations ✷ Family Code §17400(d)(2) Current Income Unknown No Income History California Min. 40 Hours/Week ✷ CP/Other Parent Income Usually Irrelevant ✷ Visitation Relevant ✷ Family Code §17432 Can be set aside later, under limited conditions

III. Learning the Basics ■Exercise #3: Low-Income Adjustment ✷ Family Code § 4055(a)(7) Net Disposable Income < $1000/Month Presumed to be Entitled Court has discretion to NOT apply ✷ Low-Income Ranges Low High ✷ Family Code § 4055(c) No Default Setting

III. Learning the Basics ■Exercise #4: Both Parents are NCPs ✷ FC 17402(b)(2) Parents Live Together Income is Combined Proportionately Allocated/Shared ✷ Run Only One Calculation

Questions

Orsolya F. Sabado Staff Attorney II Child Support Services Department County of Los Angeles IV. Special Legal Issues

■Tax Settings ■Tax Credits ■Hardships vs. Tax Settings ■Taxable vs. Non-Taxable Income

IV. Special Legal Issues Tax Settings ■FC § 4053 ✷ “circumstances and station in life” ■FC § 4059 ✷ Allowable Deductions ■FC § 4059(a) ✷ Tax Liabilities

IV. Special Legal Issues Bottom Line ■Tax settings ~ “leftover” income ~ child support ■Higher take-home income = Higher child support

IV. Special Legal Issues Federal Tax Filing Status ■Single ■Head of Household (HH) ■Married Filing Jointly (MFJ) ■Married Filing Separately (MFS)

IV. Special Legal Issues Child Care Credit ✷ Actually Pays ✷ Necessary ✷ Children < Age 13 ✷ Earned Income

Child Tax Credit ■Qualifying Dependent Child Is a child who is … ✷ < Age 17 ✷ Provided < ½ Own Support ✷ Lived with Parent > ½ Year ✷ U.S. Citizen/National/ Resident Alien IV. Special Legal Issues

Earned Income Credit (EIC) ■Refundable Tax Credit ■Low-Moderate Income Workers ■Qualifying Children ■Adjusted Gross/Earned Income ■Three Sets of Rules: 1.Administrative 2.Income 3.Qualifying Child(ren) IV. Special Legal Issues

Common Sources of Income ■Disability Income = SDI vs. Private Plans ✷ True disability = Nontaxable ✷ Unemployment = Taxable ■Veterans’ Disability vs. VA Pension ✷ Service = Taxable ✷ Disability = Nontaxable ■Social Security Benefits (SSA) ■SSI / SSP IV. Special Legal Issues

III. Special Legal Issues ■Exercise #5: Tax Settings ✷ Federal Tax Filing Status ✷ Exemptions ✷ Children from Other Relationships

III. Special Legal Issues ■Exercise #6: Salary vs. Self-Employment Differences in Sources of Income ✷ Self-Employment Income ✷ Operational Expenses ✷ FICA

III. Special Legal Issues ■Exercise #7: “Kitchen Sink” Exercise ✷ Tax Settings ✷ Tax Credits ✷ Hardships ✷ Taxable vs. Non-Taxable Sources of Income

Questions