Iowa Support Master

by Alft & Wilson Publishing

Spousal Support Information

This information is intended as a guide. Please conduct your own, independent research using the current Iowa Child Support Guidelines and tax regulations and codes.

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Spousal Support

The "Spousal Support Predictor" found in Iowa Support Master is intended to be merely a guide. It is found under the "Special Ops" button. Iowa has not adopted spousal support guidelines. Use this feature, as with all, as a guide. Conduct your own research.

If spousal support is involved, make sure you remember to perform step-down calculations. Failing to do so could cost your client dearly.

Effective January 1, 2018, in your case, if a party pays traditional or rehabilitative spousal support to the other party, those monies are included as income to the recipient and deducted from the payor's income. Prior obligation of traditional/rehabilitative spousal support actually received pursuant to a court order is still included.Reimbursement spousal support is not added or deducted. It is excluded.

2018 Tax Consequences: the payor of spousal support must pay FICA on the spousal support obligation. The recipient must pay state and federal taxes. Iowa Support Master will perform the calculations for you.

2019 Tax Consequences: the payor of spousal support must pay all taxes, including FICA, on the spousal support obligation. The payor may no longer deduct the amount being paid. The recipient pays no taxes or FICA on spousal support received come January 1, 2019.

Sample Case Using 2017 ISM

    2017 Calculation Results
  • NCP $180,000 income
  • CP $0 income
  • 1 child, NCP single claims the child. CP files Head of Household
  • Health coverage provided at no cost
  • Child support is $1,475 per month
  • Result: NCP takes home $8,498 per month
  • Result: CP takes home $1,475 per month
    2018 Calculation Results - With Spousal Support
  • NCP will pay $2,000 per month spousal support ($24,000 yearly)
  • NCP pays FICA on the $24,000. CP pays State/Fed taxes on $24,000
  • Child support $1,312 per month
  • Result: NCP takes home $8,040 per month
  • Result: CP takes home $3,173 per month
    2019 Calculation Results - With Spousal Support
  • NCP pays $2,000 per month spousal support ($24,000 yearly)
  • NCP pays State/Fed/FICA on $180,000. CP pays no taxes/FICA
  • Child support $1,179 per month
  • Result: NCP takes home $6,795 per month
  • CP takes home $3,179 per month.
In the example above, you can see the consequences to NCP between 2018-2019. In 2019, NCP pays $130 less in child support but pays $2,000 per month in spousal support. Total cost $3,179 per month. In 2018 NCP was paying $3,312 per month. With the tax code changes, in 2019 NCP loses $1,200 per month take home because of the tax consequences on spousal support.

 

Survival Guide

Check out our free Child Support Calculation Survival Guide!