Guidelines Changes for 2013Read the full report here - in pdf format.
1. The low-income portion of the schedule will be adjusted to reflect the 2012 Federal Poverty Level of $931 per month.
2. The notch effect will be addressed by dividing the schedule into three sections.
Area A is the low-income area of the schedule and covers NCP incomes from $1 to $1,150 per month. If NCP's income falls in this range, calculate support using only the NCP's income. The result will be the amount to be paid by the NCP.
Area B is NCP low-income ranging from $1,151 to $1,900 for one child, to $2,150 for 2, to $2,350 for 3, to $2,400 for 4 and to $2,650 for 5.
- Perform two calculations in Area B
- Use only NCP's income in the first calculation
- Use both NCP and CP income in the second calculation
- NCP will pay the lower of the two results, however, support can never be less than $30 for 1 or $50 for 2 or more.
3. Minimum Support: will change to $30 per month for one child and $50 for 2 or more children.
4. Mandatory Pension: This deduction is no longer allowed. If, however, a party is subject to a mandatory pension and they are exempt from Social Security and Medicare tax, then the party shall be allowed to deduct the value of the Social Security and Medicare Tax. Example: a party is subject to 9% mandatory pension rate. The Social Security and Medicare tax rate is 7.5%. The party may only deduct 7.5% of the 9% they must contribute towards their mandatory pension. The balance, 1.5% is not deductible to reduce their income subject to child support calculations.
The Rub: consider this, the parent who is subject to the mandatory pension, such as an Iowa state trooper who does not pay into Social Security/Medicare, their contributions being made to the mandatory pensions are not subject to income tax. Iowa Support Master must know what the mandatory contribution rate is. That percentage of their income will be added in as not being subject to income tax. So if their pension rate is 9%, this exceeds the Social Security and Medicare tax rates. This will drive up their income.
5. Occupational License Fees: formerly rule 9.5(4) mandatory pension: If such a fee is charged against a party and the party pays it out of their own pocket (not paid by the employer), the party may deduct the fee if it has not previously been deducted as a business expense on the party's tax return in arriving at the person's self-employment or other business income.
6. High Income: the maximum amount of combined income shown on the schedule will go up from $20,000 to $25,000 per month.
7. Variance - Imputing Income: The change in Rule 9.11(4) is fairly lengthy. It bears being read in full. See the actual report by Clicking Here.
8. Medical Support: The rule will change such that if the NCP is in the low-income, Area A of the schedule, income from 0 to $1,150, the "reasonable cost" of heatlh insurance contribution expected of the parent shall be zero.
9. Medical Support Table: the percentages have been adjusted on the table found in Rule 9.12(4).
10. Step-Parent Provided Health Insurance: Rule 9.12(3) is amended to reflect that for minimum orders (net incomes 0 - $1,150, cash medical support will not be ordered. Cash medical support is not ordered if a parent is ordered to provide health insurance and that parent or stepparent of the children has obtained health insurance coverage on the children.
Rule 9.14(5) is amended to reflect that the cost of health coverage on the children is to be added to the basic support obligation and pro-rated between the parents, even if the coverage is provided by a stepparent. So if a stepparent is paying $200 per month and the kids are covered, the spouse of the stepparent may claim the $200 per month as the cost of the health coverage on the kids.
A parent may object to this scheme and then the court must determine the issue of whether it would be equitable to the parties and the children.
11. Rule 9.14(5)(c) If a parent's income falls in Area A low-income, health insurance premiums shall not be prorated and added to the basic support obligation.
12. Child Care: Rule 9.11(2) allows for a variance. The rule will be amended to allow adjustments to be made based on the parties' child care expenses necessitated by employment or education.
13. Uncovered Medical Expenses: Rule 9.12(5) will be amended to provide that in joint physical care cases, the parents will share all uncovered medical expenses in proportion to their respective net incomes. In all other cases, including split or divided physical care, the custodial parent shall pay the first $250....
14. Grids: the grids will be amended to reflect the above changes.
15. Shared Care: if either party is on FIP, the offset will not apply and the obligor must pay the full amount of support as shown on line J of Section IV (Shared Care Form 1).