The BasicsIf you have a case involving a QAD - Qualified Additional Dependent, make sure you perform step-down calculations. QAD children age out.
If you are applying a QADD, child support may not go below the mandatory minimums of $30 per month or $50 for 2 or more children.
A QAD deduction may not be used to affect the threshold determination of eligibility for a downward modification of an existing order. The threshold is a 10% change. If you meet the 10% change threshold, then you may apply the QADD.
Rule 9.8 Deduction amount and use.
9.8(1) The monthly deduction for qualified additional dependents of a parent (custodial or noncustodial) shall be:
a. 8% of the parent’s gross monthly income (to a maximum of $800 per month) for one (1) child.
b. 12% of the parent’s gross monthly income (to a maximum of $1200 per month) for two (2) children.
c. 14% of the parent’s gross monthly income (to a maximum of $1400 per month) for three (3) children.
d. 15% of the parent’s gross monthly income (to a maximum of $1500 per month) for four (4) children.
e. 16% of the parent’s gross monthly income (to a maximum of $1600 per month) for five (5) or more children.
QADD Defined: To be allowed to take a Qualified Additional Dependent Deduction, the child so designated must belong to either of the parties, NOT to both, to whom that party owes an obligation of support. The party having the obligation is allowed a deduction against their income for the obligation. The deduction will be either the amount of support actually paid by that party for the support of the child or a standard deduction amount as determined by the Guidelines in Rule 9.8.
A party cannot claim both the support amount they are actually paying and the standard deduction amount allowed for a Qualified Additional Dependent. It is one or the other, not both. If there is an order requiring the payment of child support for the QAD child, you must indicate the support being paid in the "Other Deductions" screen under "Child Support Prior Order."
Three ScenariosYour case will involve one of these three scenarios.
Your case involves Joe and Mary. Mary has a child with Allan (some other dude), who of course, is not a party in your case. The child is still subject to support (under 18 and if not, in school - typical rules apply).
1. Mary is paying child support to Allan for the child, as ordered by the court. Go to "Other Deductions" and "Child Support - Prior Order" and enter the amount Mary is actually paying in support to Allan. Mary is not allowed to claim a QAD for this child.
2. Mary has custody of the child. Mary will claim this child as a QAD. If Mary is receiving child support for this child, it is not income to Mary so you do not include it in the program.
3. Allan has the child and there is no support order in place for Mary to pay support to Allan for the child. Mary may claim the child as a QAD.
Delinquent Support Deduction?Payments on delinquent support obligations are not allowed as "prior obligation of child support...actually paid" and are not deductible from gross income to determine net income for the Guidelines. State Ex Rel. DHS v. Burt,469 N.W.2d 669 (Iowa 1991). It makes no difference whether the payments are for an obligation from a prior case or whether the children are emancipated. State Ex Rel. Davis by Eddins v. Bemer, 497 N.W.2d 881 (Iowa 1993). (Information courtesy of James Meade via his "Family Law Update".)
Other TopicsAre You Required to Claim a Qualified Additional Dependent Deduction? We know of no rule requiring same. Do check the Analysis Page to check the consequences. You may give your client the QADD and cause child support to increase.
Modification of Support Action - 10% Threshold In a modification of support action, a party cannot apply the QADD to meet the 10% threshold. You must first determine if support would go up or down by 10%. If so, you may then apply the QADD to see what it does to the support amount.
QADD Defined in the Guidelines Guidelines Rule 9.5(9) Net Monthly Income/QADD. A qualified additional dependent deduction, if it applies, is used as a deduction to arrive at the net monthly income of a party. When a QADD is applied, this will drive down the income of the party with the obligation which, in most cases, will reduce the child support obligation.
Guidelines Rule 9.7 - Defines how a QADD is established. To establish a qualified additional dependent deduction, the requesting parent must demonstrate a legal obligation to the child(ren) under Iowa Code section 252A.3. Ways to demonstrate a legal obligation to the child(ren) include:
9.7(1) By order of a court of competent jurisdiction or by administrative order when authorized by state law.
9.7(2) By the statement of the person admitting paternity in court and upon concurrence of the mother. If the mother was married, at the time of conception, birth, or at any time during the period between conception and birth of the child, to an individual other than the person admitting paternity, the individual to whom the mother was married at the time of conception, birth, or at any time during the period between conception and birth must deny paternity in order to establish the paternity of the person admitting paternity upon the sole basis of the admission.
9.7(3) By the filing and registration by the state registrar of an affidavit of paternity executed on or after July 1, 1993, as provided in Iowa Code section 252A.3A, provided that the mother of the child was unmarried at the time of conception, birth, and at any time during the period between conception and birth of the child or if the mother was married at the time of conception, birth, or at any time during the period between conception and birth of the child, a court of competent jurisdiction has determined that the individual to whom the mother was married at the time is not the father of the child.
9.7(4) By a child being born during the marriage unless the paternity has been determined otherwise by a court of competent jurisdiction."
Guidelines Rule 9.8(2) - Application of the QADD
A.Original Dissolution or Support Action. For a parent not having custody of the QADD, the question becomes - is there a prior court or administrative order which obligates this parent to pay support? If yes, the parent is allowed to deduct the support he/she is actually paying. If no, then the parent is allowed to claim the Guideline amount under Rule 9.8. or a parent who has custody of the QADD, you would apply the Guideline amount under Rule. 9.8. B. Modification of Support Action.
Rule 9.8(2) does not allow the application of the QADD in arriving at the threshold determination of a downward modification of an existing order. The threshold is 10%.
Calculate support under the current guidelines without applying a QADD.
If the new support amount amounts to a 10% change higher or lower than what the party has been ordered to pay, you may then apply the QADD deduction to arrive at the proper support amount.
Reminder, you cannot claim both the amount of support actually being paid and the QADD for the same child. If there is a support order for the QADD child, then you cannot claim the QADD. You may take the deduction for support actually being paid.