KS Tax Adjustment and The EPT Adjustment

We had a question recently concerning the Kansas Tax Adjustment (Line E.3 of  the worksheet) in regards to Equal Parenting Time (EPT). The question was:

“How does the ‘Residence With’ setting impact the Tax Adjustment in an EPT situation?”

The ‘Residence With’ setting (RW) designates the “custodial parent” who receives the Child Tax Credit (CTC) of $2,000.00

The Tax Deduction To (TDT) setting can be used to shift the tax benefit of the dependency exemption (Kansas), and the CTC to the other parent.

In non-EPT scenarios, the child support is payable to the custodial parent. The tax benefit received by the custodial parent is allocated between the parents on the basis of their income percentages. If the income percentage share of the custodial parent is a greater amount than the tax benefit actually received by the custodial parent, the difference is subtracted from the child support to reduce the child support and share the tax benefit with the non-custodial parent.

In EPT scenarios, the parent paying support is the one with the higher obligation on Line F3, not necessarily the custodial parent. If the income percentage share of the custodial parent is a greater amount than the tax benefit actually received by the custodial parent, the difference is subtracted from the child support to reduce the child support and share the tax benefit with the non-custodial parent.

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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