X hits on this document





9 / 15

The Net Alimony Page shows the calculations, or you can simply click on the Net Alimony Cost figure or on the Net Alimony Benefit figure.

How are the taxes figured? If you click the Tax Calculations button at the top right of the Front Page or use the menu or press Ctrl-T, it will take you to the Taxes Page where the calculations are shown. The taxes are first calculated without any regard to alimony, and the resulting taxes are shown about half way down the page where the taxes are shown "w/ no alimony."

Then the taxes are calculated with the alimony factored in and those resulting taxes are shown "w/ alimony."

The program then subtracts the two sets of taxes and divides by 12 months to get a net monthly alimony tax cost/benefit. The program does not simply use marginal tax rates since the alimony adjustment can result in a party straddling tax brackets, although the marginal tax brackets are shown on the Taxes Page for your information. Also, using marginal tax rates is risky because alimony can affect Itemized Deductions and exemptions (see Paragraph 6, Itemized Deductions above).

Child Support Calculations: The Child Support figure shown in the Results box on the Front Page is simply the amount of child support payable by the noncustodial parent and is carried over from the Child Support Page (Worksheet A). As you input the Alimony amount, that it is automatically figured in the Child Support calculation. Click on the Child Support figure to go to the Guidelines page or click the Child Support button at the top right.

While it should be self-evident in most cases who the payor of the child support is, this program will show which party is to pay the child support. This can be particularly helpful in split custody cases.

If you get a result that is slightly different from the All-In-One Child Support Calculator, it is because the Alimony Calculator is more accurately estimating the actual child care tax credit since it has more complete tax information.

Monthly Disposable Incomes: The Husband's Net amount is actually the Husband's net disposable amount that he has to live off of each month after his gross monthly income is adjusted for taxes, FICA/Medicare, child support, after-tax alimony and other mandatory obligations. The Wife's Net is the same for the Wife.

If you want to see the actual calculations for these amounts, click the Disposable Income button on the Front Page, and it will take you to the Disposable Monthly Income Calculations Page. The taxes on that page are those shown on the Taxes Page ("w/o alimony"), but divided by 12 months. The FICA/Medicare taxes are calculated based on the incomes shown on the Front Page (or Income Page, as the case may be). The other mandatory obligation items are carried over from the Front Page.

Version 2.03.1


Document info
Document views53
Page views53
Page last viewedMon Jan 23 07:35:19 UTC 2017