What is the name of your state? Louisiana
In regards to calculating child care expenses, this is the law in my state:
§315.3. Net child care costs; addition to basic obligation
Net child care costs shall be added to the basic child support obligation. The net child care costs are determined by applying the Federal Credit for Child and Dependent Care Expenses provided in Internal Revenue Form 2441 to the total or actual child care costs.
Acts 1989, 2nd Ex. Sess., No. 9, §1, eff. Oct. 1, 1989; Acts 2001, No. 1082, §1.
When I look up the "Federal Credit for Child and Dependent Care Expenses", I read this:
For 2006, you may use up to $3,000 of the expenses paid in a year for one qualifying individual
So, am I figuring this correctly? Someone please correct me if I am wrong.
Let's say a CP pays $400 a month for daycare (that is average for my area). That is $4800 a month.
So, for purposes of child support calculations, lets say the CP had a child in daycare for the whole yr and plans on keeping the child in all of next yr as well.
Does that mean, since LA laws says they apply this credit, that the CP can only claim $1800 per year, which is the same as $150 per month?
So even though $400 a month is paid, only $150 can be used in the calculation??
NOW- lets say the CP gets CCA, and it pays 40%. So, daycare costs $400, only $240 is paid. That is $2880 a year. So, if I am reading it correctly- the NCP would not be responsible for ANY daycare, because once they apply the credit, there is a deficit of $200?
I know there are rules on how much credit a CP can get, depending on their income, but am I getting the gist of the way its supposed to be correct?
If anyone has any help in regards to this, I would appreciate it. I just dont know how this works, as I just read this today, I had no clue it existed before now.
In regards to calculating child care expenses, this is the law in my state:
§315.3. Net child care costs; addition to basic obligation
Net child care costs shall be added to the basic child support obligation. The net child care costs are determined by applying the Federal Credit for Child and Dependent Care Expenses provided in Internal Revenue Form 2441 to the total or actual child care costs.
Acts 1989, 2nd Ex. Sess., No. 9, §1, eff. Oct. 1, 1989; Acts 2001, No. 1082, §1.
When I look up the "Federal Credit for Child and Dependent Care Expenses", I read this:
For 2006, you may use up to $3,000 of the expenses paid in a year for one qualifying individual
So, am I figuring this correctly? Someone please correct me if I am wrong.
Let's say a CP pays $400 a month for daycare (that is average for my area). That is $4800 a month.
So, for purposes of child support calculations, lets say the CP had a child in daycare for the whole yr and plans on keeping the child in all of next yr as well.
Does that mean, since LA laws says they apply this credit, that the CP can only claim $1800 per year, which is the same as $150 per month?
So even though $400 a month is paid, only $150 can be used in the calculation??
NOW- lets say the CP gets CCA, and it pays 40%. So, daycare costs $400, only $240 is paid. That is $2880 a year. So, if I am reading it correctly- the NCP would not be responsible for ANY daycare, because once they apply the credit, there is a deficit of $200?
I know there are rules on how much credit a CP can get, depending on their income, but am I getting the gist of the way its supposed to be correct?
If anyone has any help in regards to this, I would appreciate it. I just dont know how this works, as I just read this today, I had no clue it existed before now.