Guideline Calculator: Today
and Tomorrow
Presenters:
Sandra Roberts-Stokes, Alameda County Department
of Child Support Services, sandra.robertsstokes@acgov.org
Robert Woodard, Los Angeles County Child Support
Services Department,
Robert_Woodard@cssd.lacounty.gov
Moderator:
Roye Randall, Los Angeles County Child Support
Services Department,
Roye_Randall@cssd.lacounty.gov
Prepared by: Sandra Roberts-Stokes and Orsolyo F.
Sabado, Los Angeles County Child Support Services
Department, Orsolyo_Forgo@cssd.lacounty.gov
CSDA Conference October 2009
1
SYNOPSIS OF THE APPROACH TO
MANAGING THE CSE GUIDELINE
CALCULATOR
_____________________________________________
Presented by Sandra Roberts-Stokes, CSA
County of Alameda
Department of Child Support Services
2
GOAL OF THIS PRESENTATION
• To make members of the LCSA
aware of the teams in place to
maintain/improve the integrity
of the State Guideline
Calculator (SGC).
• To make members of the LCSA
aware of their role in
maintaining/improving the SGC
3
GC Internal Support Team
During the CCSAS project certification
phase, DCSS and the AOC established
a GC Internal Support Team (GCIST) to
manage the activities related to the
implementation of the GC.
4
GCIST
• The DCSS staff members
participating in the GC Internal
Support Team (GCIST) coordinate
activities related to management of
the GC between DCSS branches
and divisions. All relevant functional
areas within DCSS now have an
identified GC point of contact
participating in the GCIST
5
CURRENT GCIST Team Members and
their Roles
TEAM MEMBER
ROLE/RESPONSIBILITY
Project Manager
• Coordinate all GC activities for DCSS
Liaison to Executive Branch
• GC Liaison to DCSS executive branch
Program/Policy Establishment
Branch Representative
• GC Program/Policy support
Sharepoint/Reporting support
• GC Reporting and Communications support
Training support
• GC Training and Design support
Liaison to CCSAS Test Team
• GC Testing and Design support
Legal support
• GC Legal Division support
Network/IT support
• GC IT/Network support
Information Security support
• CSE Information Security support
CCSAS Test Team support
• CSE Software Testing support
CSE Help Desk and
PRT support
• CSE Help Desk support
6
GC Coordination Team
For the ongoing management of GCrelated development and testing,
DCSS and the AOC have established a
new team with members of the CSDA
LPC, the LCSA legal staff and the IV-D
Child Support Commissioners. The
new team is referred to as the GC
Coordination Team (GCCT) . The
GCIST and GCCT will work together to
provide overall support for the ongoing
management of the GC.
7
GCCT
• Guideline Calculator Coordination
Team
– In addition to the AOC and DCSS staff
members participating in the GCIST,
the GC is supported by a larger group
of end-user/stakeholders consisting
of:
– Members of Local Child Support
Agency (LCSA) legal divisions,
– CSDA LPC members
– IV Child Support Commissioners
8
Guideline Calculator
Coordination Team
TEAM MEMBER
ROLE/RESPONSIBILITY
Court User/Remote
Testing
• Court users who participate in the GCCT and also participate in
hands on remote testing of GC software changes
Court User/Stakeholder
• Court users who participate in GCCT and may provide test
scenarios but do not generally participate in hands-on remote
testing
LCSA User/Remote
Testing
• LCSA attorneys who participate in the GCCT and also participate
in hands-on remote testing of GC software changes
LCSA User/Stakeholder
• LCSA attorneys who participate in the GCCT but who do not
generally participate in hands-on remote testing of GC software
changes
9
FOCUS AREAS
• COMMUNICATION
• CHANGE PRIORITIZATION
• SOFTWARE TESTING
10
1) COMMUNICATION
• Communication between Department of
Child Support Services (DCSS), the
Administrative Office of the Courts
(AOC) and critical GC stakeholders
including members of the Child Support
Directors’ Association (CSDA) Legal
Practices Committee (LPC), Local Child
Support Agency (LCSA) legal staff
members and IV-D Child Support
Commissioners.
11
MEETING SCHEDULE
The GCIST and GCCT participate in the following
regular meetings:
• 1. Bi-weekly status meetings: This is an ongoing, regular meeting that includes AOC,
DCSS and BP members of the GCIST via
teleconferencing, where issues related to GC
schedule, performance, defects and risks are
presented and discussed. These meetings are
generally hosted by DCSS GCIST team
members.
12
MEETING SCHEDULE- Cont
• 2. GC Coordination Team meetings:
These are ongoing monthly meetings that
include members of the GCIST, Child
Support Commissioners and
representatives of the LCSA legal
divisions. These meetings are generally
hosted by DCSS GCIST team members,
are mainly attended by teleconference
and focus on communication, defect
prioritization and testing concerns related
to the internal GC.
13
MEETING SCHEDULE- Cont.
• 3. DCSS Executive status meetings:
DCSS members of the GCIST provide
regular status reports to the DCSS
executive management team. These
are attended by the DCSS Director,
Deputy Directors and Regional
Administrators.
14
MEETING SCHEDULE- Cont.
• 4. Problem Resolution Team meetings:
DCSS members of the GCIST monitor
the daily PRT agenda for issues
related to the GC and attend the daily
PRT meetings to sponsor all such
issues with respect to establishing
priority and providing additional
information as needed
15
COMMUNICATION – Cont.
• Communication procedures
include those associated with
how to submit questions or
report problems related to the
GC.
16
CCSAS CSE Option 1 Help and Support – Whom
to Contact and When…
“Option 1 LCSAs will always call the CSE Help Desk as their first
Point of Contact…”
WHO TO CONTACT
EMAIL OR PHONE NUMBER
WHEN TO CONTACT
LCSA Super User– Designated person or backup in your area. If
necessary, the Super User will contact the CSE Help Desk on
your behalf
. Local resource in your area
• First point of contact
• Super User will contact CSE Help
Desk on your behalf
CSE Help Desk – The CSE Help Desk will provide all help desk
services for the Option 1 LCSAs
SEE HANDOUT FOR NUMBER; FOR
INTERNAL USE ONLY
(never given to the public)
SEE HANDOUT FOR EMAIL ADDRESS;
FOR INTERNAL USE ONLY
(only to be used to send information on
existing problem ticket)
• All problems encountered except for
SDU related issues
Email can be used to send information only for an existing problem
ticket in support of the problem (e.g., screen prints, error
messages). Put the CSE Help Desk
Problem Ticket Number in the Subject Line and include the
following in the email:
Caller Name, Caller Phone Number, Caller Email, County Location,
SWS/CSE Application User Id, Call Back Name, Call Back
Phone Number, Case/Participant #, Case/Participant Name,
Reason For The Call
17
CCSAS CSE Option 2 and 3 Help and Support – Whom to
Contact and When…
”Option 2 and 3 LCSAs will always call their local LCSA Help Desk as
their first Point of Contact…”
WHO TO CONTACT
EMAIL OR PHONE NUMBER
WHEN TO CONTACT
LCSA Super User– Designated person or backup in you
area. If necessary, the Super User will contact the
LCSA Local Help Desk on your behalf.
Local resource in your area
• First point of contact
• Super User will contact CSE Help Desk on
your behalf
LCSA Local Help Desk (existing numbers) –
Local Help Desk Number
• All problems encountered except for SDU
related issues
CSE Help Desk – The CSE Help Desk will provide CSE
application specific support.
SEE HANDOUT FOR NUMBER; FOR
INTERNAL USE ONLY
(never given to the public)
SEE HANDOUT FOR EMAIL ADDRESS;
FOR INTERNAL USE ONLY
(only to be used to send information on
existing problem ticket)
• CSE application errors
• Slow CSE system response
• CSE page errors
Email can be used to send information only for an
existing problem ticket in support of the problem
(e.g., screen prints, error messages). Put the CSE
Help Desk Problem Ticket Number in the
Subject Line and include the following in the
email:
Caller Name, Caller Phone Number, Caller
Email, County Location, SWS/CSE Application
User Id, Call Back Name, Call Back Phone
Number, Case/Participant #, Case/Participant
Name, Reason For The Call
18
TEMPLATE FOR REPORTING
STAFF MEMBER
First Step: Call the CSE Help Desk to obtain a MANAGE NOW ticket number
Subject line: MANAGE NOW ticket number – Guideline Calculator
Body of email:
a. CSEHD Reporter name:
b. CSEHD Reporter phone number:
c. CSEHD Reporter email address:
d. County Location: (e.g. Tuolumne)
e. CSE application User ID of person who reported the problem:
f. CALL-BACK NAME AND PHONE NUMBER:
g. Information regarding the issue:
1. Case participant # of error problem page:
2. Case participant name of error problem page; if ECSS problem, include names and DID#
3. Page name, if applicable; if GLC page, also indicate section/subsection where error problem
occurred:
4. Button name, if applicable:
5. Time issue occurred:
6. Brief statement of what you were doing when the problem occurred – this includes
which page section subsection you were on, what you clicked, what you were trying to get to:
7. State what troubleshooting you did prior to reporting the incident:
Copy of PRINT SCREEN attached
Email to CSE help desk
19
2) PRIORITIZATION
The review and prioritization of
proposed design changes and
software implementations,
including those related to new
and existing defects.
20
3) TESTING
The teams undertake the
testing of proposed design
changes, including those
related to new and existing
defects.
21
DISCUSSION OF RECENT
DEFECTS CORRECTED/AND
OUTSTANDING
• Recently resolved defects
• Recently discovered defects
22
ACRONYMS AND ABBREVIATIONS
ABBREVIATION
OR ACRONYM
AOC
BNL
BP
CCSAS
CSDA
CCTC
DCSS
DTS
GC
DESCRIPTION
Administrative Office of the Courts
Business Needs List
Business Partner
California Child Support Automation System
Child Support Directors Association
California Court Technology Center
Department of Child Support Services
Department of Technology Services
Guideline Calculator
23
ACRONYMS AND ABBREVIATIONS – Cont.
ABBREVIATION
OR ACRONYM
GCCT
GCITS
HHSDC
IV-D
LCSA
LPC
PGTF
PRT
DESCRIPTION
Guideline Calculator Coordination Team
Guideline Calculator Internal Support Team
Health and Human Services Data Center
Reference to Title IV-D of the Social Security Act
Local Child Support Agencies
Legal Practices Committee
Plan to Go Forward
Problem Resolution Team
24
GUIDELINE CALCULATOR:
SELECTED TOPICS
Prepared by Orsolya F. Sabado, Staff Attorney
Child Support Services Department
County of Los Angeles
Orsolya_Forgo@cssd.lacounty.gov
CSDA Annual Conference October 2009
25
Topics
• Tax Settings
– Why worry about them?
– What do they mean?
– When should they be checked or
unchecked?
• Selected Income Issues
– Income for child support vs. Income
for garnishment
– Taxable vs. Non-taxable
26
Why do we need to worry about
tax settings?
• FC § 4053: support according to parents’
“circumstances and station in life.”
• FC § 4059: annual net disposable income =
annual gross income – allowable deductions.
• FC § 4059(a): parties’ tax liabilities are an
allowable deduction.
• FC § 4059(a): tax liabilities considered are those
actually payable after consideration of filing
status, exemptions, deductions and credits.
27
Why do we need to worry about
tax settings?
Bottom line:
Tax settings affect the parties’ “leftover”
income from which to pay child support.
Therefore, the higher the take-home income
after taxes are paid, the higher the child
support.
28
A word about “Deductions”
• Guideline context: § 4059 provides for a
handful of specific, “allowable” deductions
from a parent’s gross income. These may or
may not be treated the same way by the
federal and state tax codes.
– Example: hardship deductions
• Tax context: Certain deductions are allowed
by state and federal tax codes but are not
necessarily treated as deductions by the FC
for purposes of calculating child support.
– Example: depreciation deductions
29
Where Do Tax Issues Arise in
the GC?
• Tax Information
– Filing status; credits; exemptions
• Monthly Income Information
– Taxable vs. non-taxable income
– Determine gross amounts to be entered
• Monthly Deduction Information
– Before-tax vs. after-tax deductions
– Tax-deductible vs. GC-deductible
30
Credits vs. Exemptions
vs. Deductions
Gross Income
– Above-the-line Deductions
= Adjusted Gross Income
– Exemptions
– Standard/Itemized Deductions
= Taxable Income
Taxes Due
– Credits
Taxes Payable/Refund Due
31
Federal Filing Status
• Single: unmarried as of the last day of calendar
year
• Head of Household: unmarried + a child in
common or from another relationship lived with
the parent more than half of the year
• Married filing jointly: parents are married to
each other and file together OR to other people
and file with them
• Married filing separately: parents are married to
each other OR to other people but file separately
DCSS California Guideline Child Support Calculator User Guide, p. 12 [“DCSS User Guide”]. See
Appendix.
32
Exemptions and Credits
Entry Boxes
Exemptions: Each taxpayer gets one personal exemption
for him/herself and one for each dependent. A dependent
for these purposes can be a qualifying child or a qualifying
relative, which includes stepchildren.
33
Child Care Credit
1) Parent actually pays someone to care for his/her child; and
2) The child care expenses are necessary for the parent to work1 (but
child care expenses incurred so that the parent can get an education
are not included); and
3) The child is under the age of 13; 2 and
4) The parent had earned income.1
1Full-time
or part-time work will qualify as does a parent actively looking for work. However, there must be
earned income for the tax year in order to be able to take the credit. IRS Publication 503. Please see
the definition of earned income in the Earned Income Tax Credit Cheat Sheet.
2The portion of the child care expenses incurred during the tax year in which the child turns 13 may be
claimed up to the child’s 13th birthday. See IRS Publication 503; IRC § 21.
34
Child Tax Credit
Child Tax Credit may be claimed in addition to the EITC and the Child
Care Credit.
1) The parent’s son, daughter, stepchild, foster child, brother, sister,
stepbrother, stepsister, or a descendant of any of them (for
example, your grandchild, niece, or nephew); and
2) Was under the age of 17 at the end of the tax year; and
3) Did not provide over half of his or her own support for the year;
and
4) Lived with the parent for more than half of the year (except in
cases of divorced or separated parents IF the custodial parent
signs a statement regarding not claiming the child on his/her tax
return); and
5) Was a U.S. citizen, a U.S. national, or a U.S. resident alien.
See Publication 972 regarding details of the credit, including qualifying an adopted child.
35
Earned Income Tax Credit
EITC is a refundable tax credit available to low- to moderate-income
workers whose qualification depends upon a) the presence and
number of qualifying children and b) their adjusted gross income
and earned income.
There are three sets of rules:
A) Administrative rules: User must determine whether parent
qualifies
B) Income rules: GL calculator determines whether parent
qualifies
C) Qualifying child(ren) rules: User must determine the presence
and number of qualifying children.
Please refer to “Earned Income Tax Credit Cheat Sheet” for the
rules, provided in the Appendix.
36
Federal Checkboxes
37
Federal Checkboxes
• Self-employment taxes: This box should be left checked so
that the GL calculator can calculate the self-employment taxes
when an amount is entered under self-employment income.
This box should only be unchecked if self-employment earnings
are less than $400 for the year.1
• FICA and Medicare: These are payroll withholdings for social
security and Medicare. This box should be unchecked only if
the employer is not withholding. 2 For example, FICA taxes do
not apply to services performed by a student while working for a
college, school or university where the student is enrolled. 3
1IRS
Publication 334.
IRC § 3101 et. seq.
3IRS Rev. Proc. 2005-11; IRS Treasury Decision 9167.
2See
38
Federal Checkboxes
• Advance Earned Income Credit: Taxpayers who expect to
qualify for the EITC and have at least one qualifying child may
receive at least a part of the EITC credit in each paycheck as
opposed to when they file their return.1
• This is treated as a deduction (in the IRC sense) when the
taxpayer gets the payroll check, thereby increasing the
taxpayer’s take-home pay.
• This box should be unchecked when the parent is younger
than 25 years old or older than 65 years old and does not
have a qualifying child. 2
1See
IRS 2009 Form W0-5 Instructions regarding how to qualify for the AEITC.
2DCSS Guideline Calculator Resource Guide for Child Support Professionals, p. 15 (Jan. 2009 [“DCSS
39
Resource Guide”]. See the EITC Cheat Sheet for the rules.
California Tax Settings
40
California Filing Status
• Registered Domestic Partners (RDP): As of January 1,
2007, RDPs are required to file their tax return the same as
married couples do. CA recognizes RDP status only for
couples who are members of the same sex or one or both are
65 years of age or older. 1
• However, because the Internal Revenue Code does not
recognize domestic partnerships, a parent may have to file
individually on a FITR but as a RDP on the CA tax return. 2 In
such cases, the filing status box should not say “same as
federal.”
1 FTB
2 IRS
Publication 737. Please see the publication for other qualifying rules for RDP filing status.
Publication 501.
41
California Entry Boxes
• CA Child Care Credit: CA child care credit is a percentage
of the child care credit provided under the federal tax rules.
The qualifying child age limitation is also under 13 years of
age.
• Important Note: Neither this nor the federal child care credit
will be given if there is no corresponding child care expense
entered.
42
California Checkboxes
•
CA State Income Taxes: This option should only be unchecked when
the parent’s income is subject to income tax in CA but it should be
excluded from the calculation. 1
•
CA SDI: California State Disability Insurance (SDI) is a partial wagereplacement insurance plan for California workers. The SDI programs
are State-mandated and are funded through employee payroll
deductions for all employees who earn $100 or more in a calendar
quarter. Some domestic workers, government employees and
interstate railroad employees may be excluded.
Some employers may also establish a Voluntary Plan in place of SDI. 2
This box should be unchecked if the employee does not have SDI
deducted.
•
•
1 DCSS
2FTB
Guideline Calculator Resource Guide, p. 16.
Fact Sheet, DE 8714C-Rev. 32 (1-09), available at http://www.edd.ca.gov/pdf_pub_ctr/de8714c.pdf.
43
California Checkboxes
• CA Dependency Credit for Dependent Parents:
Both the federal government and the state permit a
credit for the dependent care of certain qualifying
individuals.1 This is covered by the same rules as the
child care credit.
• This box should only be checked if the taxpayer is
caring for a qualifying parent. See Form 2441 to
determine if a taxpayer has claimed a qualifying
parent.
1IRS
Publication 503; FTB Publication 803; IRS Form 2441.
44
California Checkboxes
•
•
CA Joint Custody Head of Household Credit: Generally, when
parents have joint custody of their children, the parent, in whose house
the child lives for more than half of the year as the child’s main
home and with the parent, can claim this credit. However, the parent
must qualify to file as head of household. 1
If a parent wants to claim the credit in cases where there is a joint
custody arrangement but the child lives with the parent less than half
of the year, he/she may do so with the following qualifications:2
–
–
–
–
1FTB
2FTB
Is unmarried or separated and filing separately from his current spouse;
Maintains his/her home as the main home for a biological child, stepchild, adopted
child or grandchild;
Lives with the child at least 142 days but not more than 182 days;
Possesses one of the following documents that indicates that his home is the main
home for the child:
• A decree of legal separation or dissolution of marriage;
• A written agreement entered into after divorce or separation but before final
decree.
Publication 1585, p 3.
Publication 1585, p. 5–6.
45
California Checkboxes
•
•
CA Renter’s Credit: 1 This is a nonrefundable tax credit. In tax terms,
this means that a taxpayer must have a tax liability against which to
claim it . A qualifying taxpayer is one who:
– Was a resident of the state for the tax year;
– Adjusted Gross Income was $34,936 or less if single or married, filing
separately and $69,872 if married, filing jointly, head of household or
qualifying widower;
– Paid rent for at least half of the tax year for a property that was the
principal residence;
– Did not live with another person for more than half of the year who could
claim the tax payer as a dependent;
– Property rented was not tax exempt;
– IF married, neither the taxpayer nor the spouse were granted a
homeowner’s property tax exemption.
This box should only be unchecked if the taxpayer does not qualify for a
reason other than income and/or filing status.
1 See
Rev. & Tax Code §17053.5.
46
Selected Income Issues
47
Annual Gross Income
• Family Code Definition: “The annual gross income
of each parent means income from whatever source
derived . . . and includes, but is not limited to, the
following. . . .” 1
• Internal Revenue Code Definition: “Gross income
means all income from whatever source derived,
including (but not limited to) the following items. . . .”2
Code § 4058(a).
2 IRC § 61(a).
1 Fam.
48
Disability Benefits
• Disability benefits are taxed differently depending upon
the program paying it. 1
• The State Disability Insurance (SDI) plan is the most
common type of disability plan but individuals may be
part of a voluntary plan 2 or an elective coverage plan 3
also.
Publication 525, p. 17; see also IRC § 104.
2A voluntary plan is a private plan that employers/employees and private groups may apply for approval of by
the EDD in lieu of the state disability plan. LA County offers such a plan. Employment Development
Department website, available at http://www.edd.ca.gov/Disability/Disability_Insurance.htm.
3 An elective plan is available to employers, self-employed persons and family employment individuals who are
not subject to the California Unemployment Insurance Code. Employment Development Department
website, available at http://www.edd.ca.gov/Disability/Disability_Insurance.htm.
1 IRS
49
Disability Benefits
• The State Disability Insurance (SDI) may be paid in
two forms:
• SDI paid to a recipient who leaves work because of a
disability is non-taxable. 1
• SDI paid to a recipient who was previously receiving
unemployment, became disabled and began to receive
SDI instead is taxable because it is considered a
substitute for unemployment insurance. 1
1Federal
Tax Regulation § 1.85–1.
50
Private Disability Plans
• These include voluntary and elective plans.
• As a general rule of thumb, income received as a result of
injury or sickness from an employer-paid plan, is taxable. 1
• If the employee also contributes to such plan, the portion of
the income attributable to the employee’s contribution is
non-taxable.1
• Enter these payments under “Disability” on the GC in
accordance with whether they are taxable or non-taxable.
1IRS
Publication 525 (2008), p. 17.
51
State/Federal
Disability/Unemployment
• Unemployment and disability benefits (which are
paid as a substitute for unemployment) are also paid
as part of federal and state programs.
• Because they serve the similar purpose of replacing
income, they are treated similarly for GC purposes.
• These benefits include:
– CA SDI; Unemployment Insurance Benefits; and Paid
Family Leave.
IRS Publication 525, p. 29 (2008)
Federal Tax Regulation § 1.85–1.
52
State/Federal
Disability/Unemployment
• Other such benefits include:
– Railroad unemployment benefits
– Trade adjustment benefits
– Unemployment issued under the Disaster Relief and Emergency
Assistance Act of 1974
• They are taxable income under federal laws but non-taxable
under CA state laws. Therefore, these amounts should be
entered as “unemployment compensation,” and a
corresponding amount should be entered under “Adjustment to
State Income.”
• Look on a 1099-G or Form 1040, line 19. See Appendix.
53
Unemployment Insurance
Benefits Treated Differently
•
Supplemental unemployment benefits received from an employerfinanced fund (to which the employee did not contribute) are taxable as
regular wages. These are reported as wages on Form 1040, line 7.
•
Unemployment benefits received from private unemployment funds to
which employees contribute are taxable to the extent that they exceed the
amounts contributed by the employee. These are reported on Form 1040,
line 21.
•
Payments by a union to an unemployed union member are treated as
taxable income and reported on Form 1040, line 21. If any portion of the
insurance is contributed by the union member and such contributions are
not deducted, then the benefits are taxable to the extent that they exceed
the amounts contributed by the member. Guaranteed wages while
unemployed are treated and reported as regular taxable income.
54
Unemployment Insurance
Benefits Treated Differently
• Government and state employees who are not covered by
the state’s unemployment laws may get benefits from
Government and state employee unemployment funds.
These benefits are taxable income to the extent that they
exceed any amounts contributed by the employee if those
contributions were not deducted. If they were deducted,
then the entire benefit is reported as taxable income on
Form 1040, line 21.
• “Deducted” here refers to making the contributions by way
of wage deductions. If contributions are not made through
payroll deductions, then it is paid from income that has
already been taxed and should not be taxed again.
• Example: LA County Employees
55
VA Benefits and Disabilities
• Veterans’ Disability Compensation: Veterans who
became disabled as a result of service-related
injuries may qualify for benefits of approximately
$123 - $3100 per month. Disability must be at least
10%. 1
• These payments, which are considered “serviceconnected” disability, are non-taxable income.2
1 U.S.
Dept. of Veterans Affairs, Compensation and Benefits Page, available at
http://www.vba.va.gov/bln/21/index.htm.
2IRS Publication 525 (2008), p. 17.
56
VA Benefits and Disabilities
•
Veterans’ Pension: Wartime veterans who are totally and
permanently disabled or are 65 years or older and who have limited
income, may qualify for monthly pension. 1
•
Pension payments that are for a service-connected disability are nontaxable. However, pension payments for years of service are taxable
income.2
•
GI Education Grants: VA pays benefits to eligible Veterans and
servicemembers while they are in an approved education or training
program.
1 U.S.
Dept. of Veterans Affairs, Compensation and Benefits Page, available at
http://www.vba.va.gov/bln/21/index.htm.
2IRS Publication 525 (2008), p. 17.
3 US Dept. of Veternas Affairs, A Summary of VA Benefits, available at
http://www.vba.va.gov/VBA/benefits/factsheets/general/21-00-1.pdf.
57
VA Benefits and Disabilities
•
Payments where the payee is entitled based on non-serviceconnected disability or death, age and need are NOT subject to
garnishment. 1
•
Payments for service-connected disability are also generally NOT
subject to garnishment, except to the extent that they are in lieu of
waived retired pay. 2
•
VA education benefit payments as well as payments for vocational
rehabilitation are also NOT subject to garnishment. 3
CFR § 581.104(b).
CFR § 581.103(c)(7).
3 5 CFR § 581.104(f).
15
25
58
Social Security Benefits
•
Social Security Benefits (SSA) are paid under Title II of the Social
Security Act for retirement, survivor and disability benefits and may
or may not be taxable.
•
The amount subject to taxes depends on the total amount of income
and benefits for the taxable year.
•
When taxable and non-taxable amounts are determined, they are to
be entered accordingly under Social Security Income “taxable” or
“non-taxable” fields.
•
These benefits are subject to garnishment.1
15
CFR 581.103(c).
59
Social Security Benefits –
Taxable/Non-taxable Calculation
SSA less than base
Amt.
SSA more than base
Amt.
Single, H/H, widower,
MFS
$25,000
Non-taxable
See Form 1040, line
20b for taxable
portion.
Married Filing Jointly
(MFJ)
$32,000
Non-taxable
See Form 1040, line
20b for taxable
portion.
MFS but living w/
spouse
$0
Non-taxable
See Form 1040, line
20b for taxable
portion.
To manually calculate the taxable portion, use worksheet on
page 27 of the Form 1040 (2008) instructions. See Appendix.
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Social Security Benefits
• Supplemental Security Income (SSI – Federal) and
State Supplemental Program (SSP – California) are
need-based programs. SSI is paid out pursuant to
Title XVI of the Social Security Act.
• Since anyone receiving SSI benefits is considered to
be living below the poverty standard, these benefits
cannot be considered as income for child support and
cannot be reached. 1
1
5 CFR 583.104(j). Elsenheimer v. Elsenheimer (2004) 124 Cal.App.4th 1532, 22 Cal.Rptr.3d 447.
61
Hypothetical
CP Claire has applied for child support services for DP David (age 2) whom she had
with NCP Ned. The staff attorney at the court hearing in September on the issue
of guideline support has the following facts to work with:
Claire is a 24-year-old student at a local university where she not only attends classes
but also works at the library. She earns minimum wage and works 25 hours per
week. She also lives off of student loans. Claire pays child care of $400 per
month for her to attend classes and work. Ned takes David every other weekend.
Ned has remarried and has 1 child (Nicolas, age 1) from his current marriage. His
wife, Wilma, also has a child (Victoria, age 13 in August of this year) from a
previous marriage. Ned and Wilma pay $300 per month for after-school care for
Victoria. Ned has been laid off in July and in September began receiving state
unemployment compensation of $275 per week and an additional $1200 per
month in private unemployment for 6 months. His previous salary was $3200 per
month from which he paid $150 per month to a voluntary unemployment
insurance for the last 18 months. Wilma is at home and receives SSA of
$250/mo.
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THE END.
THANK YOU.
63