The eFamilyTools Kansas child support calculator version 19.0.0 utilizes the latest (2019) tax law. In 2018 the Federal Government passed the Federal Tax Cuts and Jobs Act (TCJA). This tax code revision made numerous and substantive changes to nearly all of the tax calculations. The 2019 tax code is a further update to the TCJA. Below is a summary of the tax factors that have changed. Our software incorporates all of these factors in the determination of the income tax and child care adjustments prescribed by the Kansas child support guidelines.
Alimony
We should first point out, for information purposes, divorces filed in tax year 2019, and after, do not provide for the taxation and deduction of alimony (spousal maintenance) payments. If the case was filed prior to 2019, alimony payments are still deductible to the payor, and taxable to the payee. Since alimony has always been paid with post-tax income, this new change seems logical.
Tax Brackets & Marginal Tax Rates
For 2019, the federal tax bracket income thresholds have been expanded slightly. The number of brackets and marginal tax rates remain the same as 2018. Kansas marginal rates and income thresholds remain the same as 2018.
Standard Deductions
The federal standard deduction has increased to $12,200 for single and separate filers, $24,400 for joint filers, and $18,350 for head of household filers. This is a slight increase over 2018 amounts. Kansas standard deductions remain the same at $3,000, $7,500, $3,750, and $5,500 for single, joint, separate, and head of household filers, respectively.
Personal Exemptions
The TCJA repealed the federal exemption at tax year 2018. For 2019, the personal exemption remains nil. Kansas personal exemption remains at $2250 for 2019.
Child Tax Credit
The (TCJA increased the Federal child tax credit to $2,000 for tax year 2018. The $2,000 credit remains the same for 2019. The full $2,000 credit applies to children under 17 at the end of the tax year. If the child is over 17, the credit reduces to $500 as a credit for “other dependents.” The child tax credit phases out beginning at $400,000 for married individuals, and at $200,000 for all others. The child tax credit is refundable at a rate of 15% of the earned income in excess of $2,500, up to a maximum of $1,400.
Some quick math leads us to conclude that a parent earning more than $11,833 is entitled to the full refundable amount of the credit. This is well above the Federal minimum wage.
Kansas does not provide an equivalent child tax credit at this time.
Child & Dependent Care Tax Credit (CDCTC)
At the federal level, the CDCTC remains the same along with the same prescribed income thresholds. Kansas has increased the credit to $18.75% of the calculated federal credit.
Tax adjustments in child support calculations can be quite complicated and each case may present unique circumstances. eFamilyTools incorporates all of the common tax adjustments encountered in a child support case. For those infrequent cases where our software does not consider a particular adjustment, the overall financial condition adjustment is considered a “catch-all” for any deviations beyond the scope of a typical child support case. Of course, if we can make your job easier by implementing more features – we welcome the challenge.