- Two children
- Each parent earning $15.00 an hour (full-time)
- Male paying 40% of income in child support
Here are the numbers using IRS 1040 Tax Filing and Federal Poverty Level guidelines:
|
Line Entries
(1040 Line Numbers) |
Male
paying 40% Child support |
Female receiving that
child support
|
|
Gross Income (Line 38)
|
31,200
|
31,200
|
|
Standard Deduction (40)
|
-6,100
|
-6,100
|
|
(Line 41)
|
25,100
|
25,100
|
|
Exemptions (42)
|
-3,900
|
-15,600
|
|
Net Taxable Income (43)
|
21,200
|
9,500
|
|
Tax: (44)
|
2,738
|
983
|
|
Child Tax Credit (51)
|
-0
|
-2,000
|
|
Tax Paid
|
2,738
|
0
|
|
Net Income (Gross minus Tax)
|
28,462
|
31,200
|
|
Child Support
|
-12,480
|
12,480
|
|
Actual Income:
|
15,982
|
43,680
|
|
Federal Poverty Level
(is based on Net Taxable Income AND number in household, not Actual Income) |
11,670
|
19,790
|
|
Below Poverty Level
|
No
|
Yes
|
|
Qualifies for Subsidies
|
No
|
Yes
|
The inequity, of course, is that the tax code (nor qualification for subsidies formula) factor child support -- paid or received-- at any point.
For a male, child support PAID is considered by both tax code and qualification formulas for assistance as INCOME.
For a female, child Support RECEIVED is not calculated, at all.
Rather, having primary custody—even if only one day more than the male-- exempts her income from any tax, while qualifying her for assistance.
Why is this so?
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