[Old Bumped Thread] Support payments

[calculoso]

Originally Posted by troutman

Why can't mother have vacations?

Why should she be any different than any other family that can't afford new shoes?

[kermitology]

Originally Posted by troutman

Why can't mother have vacations?

Should mother spend money supposed to be for child on vacation that does not include child?

[Mike Oxlong]

Why does the governement tax the Mother on child support payments she receives?

That money should be given to the Mother tax free. The government already taxed the father when he earned it in the first place. Generally when the parents come to an agreement on support payments it is based on tax free dollars.

My mother fought the government on those taxes when we were young. Not sure if they ever changed the law, but it is one of the most ridiculous cash grabs I have ever seen by the governement.

[BlackEleven]

Originally Posted by Mike Oxlong

Why does the governement tax the Mother on child support payments she receives?

That money should be given to the Mother tax free. The government already taxed the father when he earned it in the first place. Generally when the parents come to an agreement on support payments it is based on tax free dollars.

My mother fought the government on those taxes when we were young. Not sure if they ever changed the law, but it is one of the most ridiculous cash grabs I have ever seen by the governement.

Its the same deal when you inherit money. That money has already been taxed but when you inherit it, you pay tax on it again. Its a very stupid rule.

[troutman]

Originally Posted by Mike Oxlong

Why does the governement tax the Mother on child support payments she receives?

That money should be given to the Mother tax free. The government already taxed the father when he earned it in the first place. Generally when the parents come to an agreement on support payments it is based on tax free dollars.

My mother fought the government on those taxes when we were young. Not sure if they ever changed the law, but it is one of the most ridiculous cash grabs I have ever seen by the governement.

Child support is not taxable since 1997. Spousal support is taxed as income and deductible by the payor.

http://www.familylawcentre.com/05cas...tax-issues.htm

[Mike Oxlong]

Originally Posted by troutman

Child support is not taxable since 1997. Spousal support is taxed as income and deductible by the payor.

I was just researching that on the net and saw the law had been changed. As I said my mother fought the government on thast when we were young and looks like the law has changed since then.

Correct me if I am wrong but now it looks like the fathers are no longer allowed to write off child support payments? Would they not be able to claim their kids as dependants if the family was still together? They should still receive the same write offs for the kids as they have in the past whether the kids live with them or not.

[MoneyGuy]

Originally Posted by troutman

Child support is not taxable since 1997. Spousal support is taxed as income and deductible by the payor.

http://www.familylawcentre.com/05cas...tax-issues.htm

Crap, every time I go to answer a question, the fishy-named buy beats me to it. It's as he says above: Child support is not taxable for the last several years, but spousal support is taxable and deductible as he says also. Makes sense if you think about it.

MoneyGuy, CFP

[Fuzzy McGillicuddy]

Originally Posted by Mike Oxlong

I was just researching that on the net and saw the law had been changed. As I said my mother fought the government on thast when we were young and looks like the law has changed since then.

Correct me if I am wrong but now it looks like the fathers are no longer allowed to write off child support payments? Would they not be able to claim their kids as dependants if the family was still together? They should still receive the same write offs for the kids as they have in the past whether the kids live with them or not.

The tax laws for support payments and recipients changed at the same time. As soon as recipients no longer had to claim child support as income, the feds took away the ability to claim payments as a tax deduction. There is a grandfather clause for tax deductable support payments on court ordered agreements that were signed before the law changed.

[Jetsfan]

Check out this story from 1992. I was shocked that alimony could be for life.

http://archives.cbc.ca/society/family/clips/4661/

[Knut]

Wow.. i was so confused when i started reading and saw Lanny posting..

[BuzzardsWife]

im so sick of dads that complain about having to give their kids a decent lifestyle

[KTrain]

Originally Posted by BuzzardsWife

im so sick of dads that complain about having to give their kids a decent lifestyle

99% of dads want their children to have MORE than decent lifestyles. It's allowing their ex-wives to make the decisions on how the money is spent that is the problem.

[Coach]

Originally Posted by KTrain

99% of dads want their children to have MORE than decent lifestyles. It's allowing their ex-wives to make the decisions on how the money is spent that is the problem.

This. As a child from divorced parents I saw some pretty ridiculous demands of my Dad from my Mom. One of the main reasons I chose to live with my Dad was so he didnt have to give her child support on top of already taking him for much more than she deserved. The support money wasnt as big of a deal in my family though because I come from a pretty wealthy family.