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2017 Iowa Support Master Manual By Alft & Wilson Publishing

I. Iowa Support Master Basics A. Child Support Guidelines – Print and Keep Handy B. About (Click and Read) C. Update Software (Always Update) D. Client Questionnaire – (Forms-Print)

II. Main Screen Features

A. Selection Window B. Free Program Resources C. Analysis Page D. Client Files – Open/Save E. Client Info F. Find G. Forms-Print H. Guidelines I. Help

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II. Logical Sequence - Form 1 Preparation

A. Step 1: Start at the top of the Selection Window and go down, step-by-step.

a. Have questions on a topic? Click it for instant help. b. Click the “Help” link. c. You may want to enter “Client Info”. Not required.

B. Step 2: Click “Missing Info” (inside the Forms/Print Button). C. Step 3: Click “Analysis Page” and examine the report. Look for warnings and

advice. Check the values of claiming the children at the bottom of the report. a. You may want to check the “Special Ops” button found under “Forms-

Print” and look at the “Tax Effects” feature if you have multiple children involved.

D. Step 4: Save the file. E. Step 5: Go to Forms-Print and select Form 1.

a. This is the print-preview screen. You may edit anything that appears on this screen before you print. Nothing you change here will be saved in the program file.

b. Alternative: open the file in your word processor and edit it. Again, changes here are not saved to the program file.

c. If you print the Form, note at the top of the form the file name.

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Advice: 1. If you are running multiple calculations, once you print your form, staple it

together. It is very easy to mix up the documents. 2. If you have a case with multiple children, create Forms for each scenario. As

the oldest child drops off, do the calculation for the remaining children. As Mary leaves daycare, do a calculation for that scenario.

III. Sample Cases

A. Example One: Standard Child Support Calculation. a. Configure Petitioner/Respondent b. NCP $84,000 CP $59,000 c. NCP will claim 2 and Single d. CP will claim 1 and Head of Household e. NCP pays $2,400 per year for health coverage for the children. f. CP pays $14,400 per year for child care expenses. g. 3 Children involved.

Notes: Missing information? Client information? Analysis Page – Warnings? Multiple Children – Child Care Expenses – Run More Calculations Check the Special Ops – Tax Effects Feature

B. Example Two: Unreasonable Health Insurance Costs – Shared Care.

a. Configure Petitioner/Respondent b. NCP $35,000 – CP $18,000 c. Each will claim 1 – Each files Head of Household. d. NCP pays $1,800 for health insurance – unreasonable. e. 2 Children f. Shared Physical Care

Notes: See “Example Two Printout” below.

C. Example 3 - Low Income NCP

a. Configure Petitioner/Respondent b. NCP $13,000 – CP $34,000 c. Each will claim 1 – NCP is Single – CP is Head of Household d. NCP pays $1,500 for health insurance – unreasonable warning. e. 2 Children

Notes: See “Example Three” below.

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IV. Heath Insurance/Cash Medical

A. Cost of covering the children is cost of family plan minus cost of single plan. Example: Family plan costs $500 per mo. Single plan costs $400 per mo. The difference is $100. Enter $100 per month as cost to cover the children.

B. Step-parent has the kids covered? You will enter the cost in the program under the rules of “A” above.

C. Entering cost of health insurance removes cash medical support. D. If the other party is “low-income”, under the Guidelines, that party will not

be obligated to contribute toward the cost of health insurance nor would they be obligated to pay cash medical support if the kids are not covered.

E. You cannot enter a number in the “Cash Medical” field because the number is fixed by the Guidelines. It is based on the income of the parties.

F. If the children are covered by Title XIX, then the children are not covered by insurance and there will be cash medical support applied.

V. Comparing Forms

G. Numbers don’t match? Check the Version Date. H. Compare the forms side-by-side. I. Ask the other side for a copy of the Analysis Page. J. Override Feature – did they use it to change a number? K. Did they edit the form in the edit mode?

VI. Support and Help

A. The Guidelines B. In-Program Help Features. C. Website Help – iowasupportmaster.com D. 515-822-0203 Pat Wilson cell 610-368-5749 Mike Alft cell

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VII. 2017 Features

A. Tax Effects of Claiming the Kids Example

NCP $78,000 CP $58,500 (primary care) 3 children NCP will claim 2 CP will claim 1 and HoH NCP pays $2,400 annual health care cost. Child support $1,191.61

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USE TAX EFFECTS FEATURE Cursor over Forms-Print Special Ops Tax Effects of Claiming the Kids

B. Income Beyond Guidelines - Sample Case – High Income

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VIII. Select Issues – Child Support Guidelines

A. QADD – Read the help file on this in the program. B. Filing Status C. Health Insurance – Cash Medical – Hawk-I

a. Override - Cash Medical b. Alert the Court – Full Disclosure.

D. Children – Child Care Expenses (New Guidelines) E. Spousal Support (New Guidelines)

IX. How to Update Iowa Support Master

A. Go to iowasupportmaster.com – Click Download – Download and run the software.

B. When you receive an update available message, follow the instructions.

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X. Other Considerations – Any Calculation

1. If more than one child, always print individual calculations. Do not rely on

Section VI of the worksheet. If you have 3 children in issue, get your Form 1 the way you want it. Print it. Save the file example “smith.joe.3children”. Change the numbers to 2 children and get the Form 1 the way you want. Print it. Save the file “smith.joe.2children”.

2. On any calculation where there are children in daycare, always prepare a Form 1 with the daycare costs then print a Form 1 without daycare for future support calculations.

3. Be mindful of extended visitation credits. They start at 128 days. Every other weekend plus one night during the week plus four weeks in the summer plus 8 holidays is 140 days.

4. Be mindful if the parties have children with others. QADDs

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EXAMPLE TWO FORM 1 – UNREASONABLE COST OF HEALTH INSURANCE

I. Net Monthly Income of Petitioner, Mother [ ] Custodial Parent [ ] Noncustodial Parent [X] Joint Physical Care Petitioner claims 1 child as tax dependents. A. Sources and Amounts of Annual Income: TOTAL: $18,000.00 B. Federal Tax Deduction: Gross Annual Taxable Income $18,000.00 less 1/2 self-employment (FICA) tax less federal adjustments to income less personal exemptions, self plus 1 dependents less standard deduction filing as head of household Net taxable income - federal: $550.00 Federal Tax Liability: $55.00 Federal Tax Credits for Dependent Children Final federal tax liability: Additional Child Tax Credit (refundable): 945.00 C. State Tax Deduction: Gross Annual Taxable Income: $18,000.00 less 1/2 self employment (FICA) tax: less federal tax liability (adjusted for dependent tax credit) less standard deduction filing as head of household Net taxable income - state: $13,080.00 State tax liability (tables): $385.32 less pers/dep. credits: plus school district surtax (0%) 0.00 less tax credits Final state tax liability: D. Social Security and Medicare Tax / Mandatory Pension Deduction: Annual earned income: $18,000.00 Income not subject to FICA: $0.00 Applicable rate (7.65% wages or 15.3% self-employment as adjusted) Annual Social Security and Medicare tax liability E. Other Deductions (Annual): 1. Mandatory occupational license fees: 2. Union dues: 3. Actual medical support paid pursuant to court order or administrative order in another order for other children, not the pending matter: 4. Prior obligation of child support and spouse support actually paid pursuant to court or administrative order: 5. Deductions for 0 additional qualified dependents: 6. Child care expenses: (present action) $0.00 less federal tax credits: less state tax credits: less state tax refund: Net child care expenses: Preliminary Net Annual Income: $17,302.68 Preliminary Average Monthly Income of Petitioner $1,441.89 7. Monthly Cash Medical Support ordered in this pending action $0.00 Adjusted Net Monthly Income of Petitioner $1,441.89

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II. Net Monthly Income of Respondent, Father [ ] Custodial Parent [ ] Noncustodial Parent [X] Joint Physical Care Respondent claims 1 child as tax dependents. A. Sources and Amounts of Annual Income: TOTAL: $35,000.00 B. Federal Tax Deduction: Gross Annual Taxable Income $35,000.00 less 1/2 self-employment (FICA) tax: less federal adjustments to income less personal exemptions, self plus 1 dependents less standard deduction filing as head of household Net taxable income - federal: $17,550.00 Federal Tax Liability: $1,965.00 Federal Tax Credits Final federal tax liability: C. State Tax Deduction: Gross Annual Taxable Income: $35,000.00 less 1/2 self employment (FICA) tax: less federal tax liability (adjusted for dependent tax credit) less standard deduction filing as head of household Net taxable income - state: $29,115.00 State tax liability (tables): $1,382.68 less pers/dep. credits: plus school district surtax (0%) 0.00 less tax credits Final state tax liability: D. Social Security and Medicare Tax / Mandatory Pension Deduction: Annual earned income: $35,000.00 Income not subject to FICA: $0.00 Applicable rate (7.65% or 15.3% as adjusted) Annual Social Security and Medicare tax liability E. Other Deductions (Annual): 1. Mandatory occupational license fees: 2. Union dues: 3. Actual medical support paid pursuant to court order or administrative order in another order for other children, not the pending matter: 4. Prior obligation of child support and spouse support actually paid pursuant to court or administrative order: 5. Deductions for 0 additional qualified dependents: 6. Child care expenses: (present action) $0.00 less federal tax credits: less state tax credits: less state tax refund: Net child care expenses: Preliminary Net Annual Income: $30,094.82 Preliminary Average Monthly Income of Respondent $2,507.90 7. Monthly Cash Medical Support ordered in this pending action $0.00 Adjusted Net Monthly Income of Respondent $2,507.90

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IV. Calculation of the Joint (Equally Shared) Physical Care Guideline Amount of Child Support Petitioner Respondent Combined A. Adjusted Net Monthly Income $1,441.89 + $2,507.90 = $3,949.79 B. Proportional Share of Income 36.5055% 63.4945% = 100% C. Number of Children for Whom Support is Sought 2 D. Basic Support Obligation Before Health Insurance $1,299.00 E. Each Parent's Basic Primary Care Amount Before Health Insurance $474.21 $824.79 [Line D (Support Amt) multiplied by Line B (Proportional Share) In our example case: [Mom $1,299 X 36.5055% = $474.21] [Dad $1,299 X 63.4945% = $824.79] F. Each Parent's Share of Joint Physical Care Support $711.31 $1,237.18 [Line E multiplied by 1.5 – Ex: Mom $474.25 X 1.5 = $711.38. The reason for multiplying the amount by 1.5 is to account for the costs of maintaining two homes within which to manage the children. See the Guidelines] G. Each Parent's Joint Physical Care Support Obligation Before Health Insurance $355.66 $618.59 [Line F multiplied by .5 to account for 50% of time spent with each parent.. Ex: Mom $711.38 X .5% = $355.69] H. Cost of Child(ren)'s Health Insurance Premium $0.00 $150.00 *Calculation override. Reasonable cost for Father is $145.83 [Iowa Support Master is telling you that the amount entered for health insurance is not reasonable. The program tells you what the reasonable cost is. The program will always push the number through that you use. Mom may not agree with this. The court has discretion to adjust the numbers. Line H displays the amount that parent is currently paying for health insurance. If the Court only allows the reasonable cost, then go back to “Other Deductions” and enter $145.83 as the monthly cost.] I. Health Insurance Add-On to each Parent's Obligation $54.76 $0.00 [In this example, mom’s share of the cost of the health insurance is $54.76 per month. Dad is paying $150 per month. Common complaint is that Dad is not being given credit for paying the cost of coverage on the kids. If he has trouble believing that, take out what he is paying and show what cash medical will cost him. Mom is contributing her share the cost being paid by dad, she just isn’t sending him a check for it as it is being added in to what her share of the support obligation is.] J. Guideline Amount of Child Support $410.42 $618.59 [Line G plus Line I. So, mom’s share of support is $355.69 per month plus you add to it her share of the cost of health coverage provided by dad $54.76. Mom must pay $410.45. Given that this is a “Share Custody” case, there is an off-set. In our example, dad will pay mom $208.12 per month. See below.] K. Net Amount of Child Support for Joint Physical Care After Offset $0.00 $208.18

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EXAMPLE THREE – ANALYSIS PAGE

Noncustodial Custodial

Father Mother

TOTAL INCOME: 13000.00 34000.00

___________________________________________________________________________________

FEDERAL TAX ANALYSIS Federal Income 13000.00 34000.00

Personal Exemptions 2 2

Personal Exemptions Value 8100.00 8100.00

Credit for Over Age 65 or Blind 0.00 0.00

Federal Standard Deduction 6350.00 9350.00

Filing Status: Single Head of House

Net Federal Taxable Income 0.00 16550.00

Beginning Federal Tax Liability 0.00 1815.00

Federal Tax Credits 0.00 1000.00

Final Federal Tax Liability 0.00 815.00

Additional Child Tax Credits (refundable) 1000.00 0.00

___________________________________________________________________________________

IOWA TAX ANALYSIS

State Income 13000.00 34000.00

-less federal tax liability 0.00 815.00

-less 1/2 self employment tax 0.00 0.00

-less state standard deduction 2000.00 4920.00

-less alimony payments 0.00 0.00

Net Iowa Taxable Income 11000.00 28265.00

Beginning Iowa Tax Liability 295.88 1327.60

- less Iowa pers/dep credits 80.00 120.00

Ending Iowa Tax Liability 215.88 1207.60

___________________________________________________________________________________

FICA & PENSION LIABILITY FICA & Pension Income 13000.00 34000.00

- less FICA/Pension on Wages 994.50 2601.00

- less FICA on Self Employment 0.00 0.00

Total Allowed FICA & Pension Liability 994.50 2601.00

Mandatory Pension Paid 0.00 0.00

___________________________________________________________________________________

SUMMARY

Net Monthly Income Computation Total Income 13000.00 34000.00

- less federal Tax Liability 0.00 815.00

- less state Tax Liability 215.88 1207.60

- less FICA Liability 994.50 2601.00

Net Annual Income 12789.62 29376.40

Preliminary Net Monthly Income 1065.80 2448.03

- less Cash Medical Support (not insurance paid) 0.00 0.00

Child Support Computation A. Adjusted Net Monthly Income 1,065.80 - 2,448.03 = $3,513.84

B. Proportional share of income: 30.3316% 69.6684%

C. Number of children for whom support is sought: 2

D. Basic support obligation using only NCP income: 159.00

** NCP is very low income. Using Area A of Schedule of Basic Support Obligations. In this example case, the NCP’s

income is so low that under the Guidelines, his income falls in the shaded area of the tables. See page 13 of the

Guidelines. As such, you take his income across to two children and you will see that child support is $159 per month.

E. Basic support obligation - combined income: N/A

F. Share of Basic support obligation - combined income: N/A

G. NCP's basic support obligation before health insurance: 159.00

H. Cost of Children's Health Insurance Premium: 0.00 0.00

I. Health Insurance Add-On/Deduction: 0.00 0.00

J. Guideline Amount of Child Support for NCP: 159.00

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EXAMPLE THREE – ANALYSIS PAGE

___________________________________________________________________________________

OVERVIEW OF CASH MEDICAL SUPPORT CALCULATION

*** OVERRIDE ***You have entered Cost of Child's Health Insurance. This removes cash medical support

obligation. NONCUSTODIAL PARENT

Iowa Support Master is telling us that because we entered a cost of health insurance, it removed Cash Medical. In our

example, there would be no cash medical anyway because the NCP is low-income under the Guidelines.

Net income: $1,065.80

Percentage Rate: 0%

Gross Income: $1,083.33

Percent x Monthly Gross Income: $0.00

Health insurance entered overrides cash medical support.

Monthly reasonable cost (cash medical support): $0.00

Yearly reasonable cost (cash medical support): $0.00

CUSTODIAL PARENT

Net Income: $2,448.03

Percentage Rate: 5%

Gross income: $2,833.33

Percent x Monthly Gross Income: $141.67

Monthly reasonable cost (cash medical support): $141.67

Yearly reasonable cost (cash medical support): $1,700.00

Analyzing Cash Medical Support and NCP Income as number of children entitled to support changes

Cash medical support for 2 children $0.00

- NCP low income (shaded area of Medical Support Table) for two children

Cash medical support for 1 child $0.00

- NCP low income (shaded area of Medical Support Table) for one child

Here the program is telling you that the NCP is low income – shaded area. Check the

Guidelines!

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EXAMPLE THREE – ANALYSIS PAGE __________________________________________________________________________________

EFFECTS OF CLAIMING THE CHILDREN AS TAX DEPENDENTS

Most of your clients probably want to “claim the kids” because they have visions of

refunds and other

Tax benefits. This feature of Iowa Support Master can be used to show them the

value of claiming the kids.

Noncustodial claims 0 and custodial claims 2

Net Monthly Income 958.40 2577.38

Monthly Child Support Amount 145.00

Actual Monthly Income 813.40 2722.38

NCP’s income for the month is $958. Mom’s income is $2577.

NCP pays $145 per month in child support. This reduces NCP’s monthly income to $813.

The $145 child support adds to mom’s income making it $2722.

Noncustodial claims 1 and custodial claims 1

Net Monthly Income 1065.80 2448.03

Monthly Child Support Amount 159.00

Actual Monthly Income 906.80 2607.03

NCP’s monthly income increases so support goes up. NCP income increases from $958

to $1065.

A $107 increase in monthly income. Support goes from $145 to $159. The $107

additional income cost NCP an extra $14 per month. $107 (increase in income) – $14

(increase in support) means NCP will have $93 more his pocket each month. Over a 12-

month period, CP will enjoy an additional $1116 in income.

With CP claiming just 1, income goes down $2577 to $2448. A reduction of $129. But

child support goes up by $14 so CP sustains a net loss of $115 per month. Over a 12-

months, CP will have a loss of $1380.

Noncustodial claims 2 and custodial claims 0

Net Monthly Income 1110.80 2319.42

Monthly Child Support Amount 167.00

Actual Monthly Income 943.80 2486.42

For NCP, the difference between claiming 0 and claiming 2, he will increase his Income

by $152 per month. His child support obligation would increase from $145 to $167, or

$22 per month. $943 (claiming 2) - $813 (claiming 0) = $130 per month more money in

NCP’s pocket. Net to CP, $1560 per year.

CP’s income would go from $2722 to $2486. CP will lose $236 per month. Loss to CP of

$2832 per year.

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