Child Support as a Deduction
Allowing this would help ease the burden of the renter and therefore allow them to maintain a better quality of life and be a better tenant.
jason, i'm sorry that you weren't satisfied with my response, but i'm definitely interested in doing what i can to further address your issue. for starters, i had trouble fully comprehending what you'd like to see happen due to the lack of information in the main idea, and the related-but-not-too-specific content in the comments. specifically, what is the issue? i understand that you'd like to see child support count as a deduction, but in regards to what programs--or just income overall? the IRS doesn't count child support as a deduction because it is income earned--money that those with full custody of children would be spending on their livelihood--so what would be a strong rationale for overruling the IRS's precedence?
i'm very sorry to hear about your current circumstances and definitely hope things have improved since early october, but if you can, feel free to either continue this conversation here or give me a call at (202) 402-6422 and i'd be happy to follow up on this. for the time being, we've changed the status of this idea from rejected to under review.
Jay, I dont understand your rejection. It almost appears that you didn't fully read this thread and are calling me stupid. The deduction i am asking for is a HUD policy issue not an IRS issue. I understand the deductions available in the HUD charter are only there because they are tax deductible, but thats not to say legislation can't be started on this issue. Your unwillingness to try based on current rules simply proves whats wrong with this system. How are we to move forward if there is no change. I will be contacting others at HUD and hopefully your superiors to continue my efforts.
Also for an update I lost my job of 4 years and went on unemployment. Since i owe arrears(State of Kansas sued me for birth costs im not behind in current support) unemployment takes 50% out for support and 30% goes to rent. I lasted 3 months till couldn't afford it anymore and they had to evict me. So now i am homeless, thank you very much United States Government for showing me how much you care about the laborers that keep this country running.
Update: The housing authority gave me another grievance hearing and told me this is the last time we will talk about this issue. I was told that my next course of action was to file a law suit, lol. Meet with Sen. Jenkins in person and her jaw dropped when i explained this, but after a month of talking with her aide was told its an election year and this legislation would take to long to start now. This confirms what Boyd at the housing authority told me which was, "I know Lynn and she is conservative and would rather make it ****** to get housing than work to make it easier on low-income families. I am now in process of talking with my other 2 reps Sen. Moran & Roberts with the hopes of getting one of them interested in this, and i will be researching what after that i can do other than vote for someone else next time which I would start this over again. Fear not for i will continue to work on this and am trying to get into politics myself. If anyone is willing or can help please do. jmfultz1978 at gmail
Robert S Noland commented
There is an IRS private letter ruling to the effect that "Family Support" is neither child support nor alimony. Therefore, "Family Support" is duductable for the payor and taxable to the payee. If the payor has greater income than the payee who also has custody of any children, this can mean that the payor with the deduction has more cash flow to contribute for "Family Support." This is the situation that I was under after my divorce in California some years ago. Many divorce attorneys do not know about this letter ruling so you may have to do a little digging on the IRS website.
Jennyth Mozenko Peterson commented
Jason, this is a really good point. Those of us with any experience in that department know that the party paying child support often doesn't even get to claim the children as IRS qualified dependents for tax purposes. This would be a terrific way to help parents who are doing what they are "supposed to" in order to support their children, but end up putting themselves into poverty to do it.
There has been some discussion on this point but no real movement. I saw an issue paper in the HUD.gov website HUD doc. 25996. I would like to see if there is someone at the administrative level that would like to help me deal with this. I have talked in length with my housing authority and have talked several times with their supervisor in the Kansas City HUD office. Both other parties agree that this is an issue especially the part about CHILD SUPPORT BEING COUNTED AS INCOME FOR THE PARTY PAYING AS WELL AS THE PARTY RECEIVING THE MONEY. This is almost like paying taxes on money you already paid taxes on.
Furthermore deductions are allowed in the HUD code for things like pension benefits and child care. If child care is a deduction then why wouldn't child support be deduction. Loosely translated child support is money for the care of the child paid by the non residential parent.
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