THE CHILD CARE TAX CREDITS

The 2019 Bradley Kansas Child Support Calculator includes the federal child care tax credit (CCTC) worksheet as a part of the program. The CCTC worksheet calculates the federal child care tax credit and automatically applies it to the worksheet based on A) the amount of child care costs paid by the custodial parent for eligible children and B) the parent’s adjusted gross income.

Prior to 2013, Kansas Child Support Guidelines (Administrative order 261) included both the federal CCTC and the Kansas CCTC (which was a percentage of the federal CCTC). In 2012, however, the Kansas Legislature repealed the KS CCTC for tax years beginning in 2013. So, on Jan 1, 2016, Kansas Child Support Guidelines were changed (Administrative order 284 and subsequent Administrative Order 287) to include only the federal CCTC as an element in child support. A reference in those guidelines stated:

“IV.D.5.ed.: Note that the amounts and percentages used in this section may change from time to time due to changes in federal and/or Kansas tax law.  Current tax law should be reviewed for any potential changes.”

This language basically leaves it up to you to figure out if the KS CCTC applies or not in a given year.

A customer called recently to ask us if the KS CCTC could one again be included in our program. In 2017 the KS Legislature re-enacted the KS CCTC for tax years beginning 2018. (See notice at https://www.ksrevenue.org/taxnotices/notice17-07.pdf).

Therefore, in the August 2019 update of the Bradley Kansas Child Support Calculator we have re-implemented the KS CCTC. The 2019 program calculates the KS CCTC at 18.75% of the federal CCTC. A new stipulation of the KS CCTC is that the credit cannot exceed the amount of KS tax due. Since the program already calculates the KS tax due based on the entered AGI; it then compares the two values and uses the smaller amount as the KS CCTC.

We note that in the 2020 proposed update to the KS Child support Guidelines, the KS Child Support Guidelines Committee left in the language that indicates that the user should review current tax law to determine if changes might apply. Given the recent statistics that show a vast number of new filings for child support in Kansas involve one or fewer lawyers, the committee could assist the non-lawyer public by including the currently in-force KS CCTC tax rules in the CCTC provision section of the Guidelines. (Note: The 2020 appendix is being changed to an on-line only text so that it can be updated easily without change to the core of the guidelines, thereby circumventing the lengthy process of a publishing new Administrative Order to update the Guidelines).

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.
This entry was posted in Child Support, Child Support Guidelines, Taxes. Bookmark the permalink.