2018 Tax Update – TCJA

accountant-accounting-adviser-advisor-159804.jpegThe 2018 Tax Cut and Jobs Act enacted in mid December by Congress certainly presents a mixed bag of benefits for American families.

For example, while raising the standard deduction to $24,000 for married taxpayers ($12,000 for single), Congress deleted the $4,150 personal exemption. So a family of four (mom plus 3 kids) loses $16,600 in personal exemptions in order to gain $3,000 (Child Tax Credit increase of $1,000 per child under 17) plus $5,700 (standard deduction increase ); a net loss of $7,900 (16,600-8,700)

While many of the tax impacts are becoming more clear, the effect on child support amounts is not necessarily so obvious.

Kansas child support schedules are based on gross income from all sources, but the support schedule amounts are calculated on after-tax income. With the changes in tax rates, it appears it will be necessary for the Advisory Committee to recompile the support tables for approval as a part of new child support guideline recommendations to the Kansas Supreme Court.

As the impact of the Tax Cuts and Jobs Act on the Kansas child support calculations is better understood, appropriate updates will be issued.

In the interim, we will continue to use the most recently published child support schedules; as presently found in Administrative Order 287. We will also be updating some of the standard reports, to reflect changes like the Child Tax Credit and the Personal Exemption.

About Brad Short

CEO : Bradley Software; Of Counsel at Short, Borth & Thilges, Attorneys at Law, LLC, Overland Park, Kansas. Born Birmingham, Alabama, December 27, 1941; admitted to bar,1966, Kansas and U.S. District Court, District of Kansas; 1975, U.S. Court of Appeals, Tenth Circuit; 1976, U.S. Supreme Court. Education: University of Colorado (B.A., 1963; J.D., 1966). Contributing Author, Practitioner's Guide to Kansas Family Law, Kansas Bar Association, 1997. Listed in: The Best Lawyers in America, Family Law, every year from 1987 through 2013. Member, Technology Advisory Committee, Kansas Judicial Council, 1991-1998. Member: Bourbon County, 1966-1977 (President, 1970-1971), Johnson County (Member: Ethics and Grievance Committee, 1984-1998; Family Law Bench/Bar Committee, 1984-), Kansas and American (Vice-Chair, Solo Practitioners and Small Firms Committee, Economics of Law Practice Section, 1984-1985) Bar Associations; Kansas Trial Lawyers Association, 1974-1984 (State Treasurer, 1975-76; Member, Board of Governors, 1974-1984). Fellow, American Academy of Matrimonial Lawyers, 1994-2013 . Practice areas: Family Law.
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