What about Child Support?

How does that figure into Income for the MAGI Line 8b* of 1040 – Subsidy calculation?

Child Support – Not counted as MAGI nor is there a deduction for paying it

  1. Child Support doesn’t show as income on the 1040, but alimony shows on line 11, thus child support doesn’t count toward subsidies, Health Care.Gov  * IRS.Gov  per MAGI definition.
  2. Who is taking the deduction for the children?
    1. A taxpayer’s family means the individuals for whom a taxpayer properly claims a deduction for a personal exemption under section 151.
    2. See the definition of MAGI – Modified Adjusted Gross Income  (CFR 36B) on our website.
      1. Thus, if the non-custodial parent is claiming the deduction for the children, the subsidies would be worked out on their income, not the parent who has primary custody.
  3. So, the parent taking the deduction, would have the subsidies based on their income and deductions.  Child support would still be included in income, as it’s not deductible.
    1. Alimony would be though.
  4. Is there Employer coverage available?
    1. 9.66% Affordability Rul CFR 1.36B2  (a) (2) That might  knock out subsidies too.

For a full analysis it’s imperative that you view our other pages on the Advance Premium Tax Credit and check with competent legal and tax professionals.  If you would like to talk to a professional tax advisor about this try Bruce Bialosky [email protected]  310.273.8250

Did this page answer all your questions? Scroll down  to our Q & A section to ask them and we will respond. You do not have to leave your name.

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Child Support Handbook 

California Child Support Handbook

 

Los Angeles County Child Support Unit
Application for Child Support Services California  Courts Self Help Section on Child Support

 

6 comments on “Child Support

    • Boy, this is a mouthful and we don’t get compensated one nickel for helping people enroll in Medi-Cal.

      We cannot give you any advice on child support, we are not attorneys. https://boardtraining.info/condo-director-training-%C2%A75400/open-meeting-act-1363-05/complaints/unlawful-practice-of-law/

      We are only directing you to public information on that. Make your own decision if you will fill out the forms or check with your own attorney.

      Here’s the publications pages for CA Child Support Services
      https://childsupport.ca.gov/publications/

      Here’s the overview brochure
      https://childsupport.ca.gov/wp-content/uploads/sites/252/Publications/2019-12-31_ENG_ChildSupportOverviewBrochure.FINAL_LCSA.pdf

      Assignment and Cooperation Rules

      You must assign (give to) the county any rights you may have for:
      • Any child or spousal support payments you get while receiving cash aid.
      Medical support you get while getting Medi-Cal.

      The receipt of a cash aid payment and/or Medi-Cal Benefits Identification Card (BIC) will assign the past and present support rights of all persons for whom you are requesting cash aid and/or medical assistance. You will be sent facts on the amount of support the county gets from the noncustodial parent(s).

      • Why must your X wife assign your child support payments to Los Angeles County?

        Here’s the Medi-Cal eligibility manual.

        Here’s the 101 pages of the Medi-Cal – Medical Support Enforcement Program

        PURPOSE

        The Medical Support Enforcement Program provides that as a condition of eligibility for Medi-Cal, applicants, beneficiaries, or caretaker relatives must cooperate in medical support enforcement when there is an absent parent who may be responsible for their dependent child(ren)’s medical care,

        So, basically, while your X wife might have zero income and qualify for Medi-Cal, the county wants to know if you are rich and then they can make you pay the premiums or just kick your X and your child off Medi-Cal if the income is too high.

        Here’s the income chart https://individuals.healthreformquotes.com/subsidies/magi/income-chart/ for Medi-Cal, Covered CA programs and if the household has more than 600% of Federal Poverty Level, there are no subsidies.

        There is also a law that says the court must order a parent to put the child on THEIR medical plan if it can be done at no cost or a reasonable cost https://individuals.healthreformquotes.com/subsidies/magi/categories/alimony-child-support/child-support/health-insurance-order/ So, while you might be unemployed now, when you had a job, if your child could be added to the Group Plan, for no or reasonable cost, it’s MANDATED that you add her.

        How is the county to know what your situation is, if you don’t fill out the forms?

        ***************

        Individuals with other health coverage may be eligible for Medi-Cal, but they must apply for and use other health coverage that they have or that is available to them. Medi-Cal beneficiaries who are enrolled in managed care are also subject to this requirement due to current contracting provisions, which can make coordination difficult between the Medi-Cal managed care plan and the other health coverage plan. https://medi-cal.healthreformquotes.com/full-scope/dual-coverage/

        California is obligated to seek other sources of health coverage and to collect payment from liable third parties. As such, California requires that applicants and beneficiaries assign rights to medical support and help locate liable third parties, even going so far as to helping to establish paternity of children born outside of marriage so that the state may seek payment for medical services provided to the child.

        42 U.S.C. § 1396a(a)(25); Welf. & Inst. Code § 10020; 22 CCR § 50763(a)
        22 CCR § 50761
        42 U.S.C. § 1396a(a)(25); 42 C.F.R. §§ 433.137-433.140
        Welf. & Inst. Code § 14008.6

        See the Western Poverty Law Guide page 1.27

        • Being as you are getting these forms to make sure that you can’t put your child on your Employer Health Plan for zero premium, it looks to me like your X has already applied for Medi-Cal for your daughter.

          This is NOT legal advice! I’m not making any recommendations on what you should do or not do! I’ve only directed you to websites that seem to have relevant information.

          Covered CA does a piss poor job of doing any training for agents that they are asking to work for FREE to help their brand.

  1. My x husband went back to his country of origin. Does a California order apply overseas? What if he won’t pay?

    • Here’s an excerpt from the CA Child Support Handbook:

      Cooperating with other states, countries, and tribunals

      A parent owing support sometimes moves out of California. However, every state and many foreign countries or tribunals have an agency to enforce child support orders. Although laws differ from state to state, all child support agencies work with each other to locate parents and their assets, and to collect current and past-due child support. Federal law requires every state to enact the Uniform Interstate Family Support Act (UIFSA) so states can work together to establish and enforce child support orders. Some foreign countries do not have agreements to establish and enforce child support orders from the United States.

      Here’s some links I googled on collecting out of country:

      Israel and the U.S. entered into a federal-level Memorandum of Understanding (MOU) under the terms of which Israel and the United States each express its intent to process child support requests for the other. acf.hhs.gov

      43 percent of divorced fathers in Israel don’t pay child support haaretz.com

      US State Department on International Child Support

      Hague Convention

      Practical Handbook for Caseworkers under Hague Convention

      Prohibition on Leaving the Country
      For parents who fear that the other parent will leave the country, some safeguards are already in place. If the obligated parent owes $4,000 or more in child support arrears, his or her passport application will be denied and any existing passports can be revoked.HG.org

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