Child Care Expenses and Variance Components
Actual Child care expenses are defined in Rule 9.11A. Actual child care expenses are allowed as a deduction against income. Child care expenses mean costs to care for the children in the pending case that are reasonably necessary for the parent to work, attend education or training activities, or conduct a job search, less any third-party reimbursements and anticipated child care tax credits. See Rule 9.5(j) and 9.11A
If you have a case where one or more kids are in child care, as always, enter the costs of child care in the "Other Deductions" screen. If the party receives any 3rd party reimbursements, enter those. This will reduce the cost of day care per the rules.
Step-Down do not forget to perform step-down calculations. Kids don't remain in child care for 18 years and under the rules, it is presumed that a child who is at least 13 is no longer in need of day care. Step Down Help - Click Here.
Variance Rules Rule 9.11A allows the court to grant a variance in the child support award because of the child care expenses.
Rule 9.11A is a new provision addressing child care expenses for a custodial parent. It provides that the custodial parent's child care expenses may constitute grounds for the court to vary from the amount of child support that would result from application of the guidelines. This provision has no application in equally shared care arrangements or when the NCP falls in the low-income shaded area of the guidelines. Rule 9.11A(4)
In cases where a custodial parent is paying for child care expenses, you may expect to see requests for a variance. If a variance is warranted, child care expenses are to be considered "independently of any amount computed by use of the guidelines or any other grounds for variance." Rule 9.11A
There is a rebuttal presumption that no variance allowed for children reaching age of 13. Rule 9.11A(2)
If a variance is allowed, the support order must specify the amount of the basic support calculated before the child care expense variance, the amount of the child care expense variance allowed and the combined amount support and child care variance.
If you have a case involving child care expenses, you need to know....
1. Are the costs to care for the children "reasonably necessary" for the parent to work? Attend education or training activities? Conduct job search? Rule 9.11A(1)
2. Is that parent receiving any third-party reimbursements and/or child care tax credits? Rule 9.11A(1)
New Rule 9.14(6) - Step-down provisions. If you have a case involving more than one child, you are required to submit to the court step-down support amounts. As hard as we try, we cannot get the software to read your mind so this means is that you need to run the program and print a Form 1 for each situation.
Example: If there are 2 children in your case. Both are in daycare. You need to know what the cost will be when only one is left in daycare. Run the numbers with two in daycare and print your Form 1. Run the numbers with one in daycare and print your Form 1. Run the numbers with none in daycare and print your Form 1. Run the numbers when only one child is left for support and print your Form 1.
Here the rub, as the number of children change, the filing status of the parties may change. Maybe you have two kids, each parent will claim one child. Then when one drops off, you may want to alternate claiming the kids. You will need a Form 1 for each situation. It is impossible for the Iowa Support Master software to know who is claiming what kids or what the filing status of the parties will be. Future numbers are calculated based on current entries.
Under the "Other Deductions" screen of Iowa Support Master, enter the cost of child care expenses and the number of children who are currently in childcare. You must also indicate if the party receives 3rd party reimbursements. So if an employer is providing $200 per month toward the cost of child care for the worker, you would indicate this as a 3rd party reimbursement in the program.