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Improper CS Calculation Method in Macon County (possibly other counties too)

Started by jsmitty, Mar 23, 2011, 06:26:03 PM

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jsmitty

While petitioning for my husband's CS modification (an allowed retroactive reduction)—please don't feel bad for his ex-wife, who literally lives on CS, while we struggle to pay it from California—we found a pretty substantial error in Macon County State's Attorney's method for calculating CS: Instead of using the Circular E/federal tax tables, they are calculating "Net Income" straight from the paystubs!  The Assistant SA tried to "correct" our attorney by showing her . . . my husband's paystubs.  When our attorney corrected HER—bingo!—out popped a Circular E and the SA started back-pedaling.  (Conclusion: They KNOW what they're doing!)

This deceptive practice results in higher "Net Income" upon which to base CS, because, we all know, payroll withholding does not include all the other forms of federal tax that we itemizers pay (mortgage interest, taxes, spouse and dependent credits, etc.).  Your federal tax RATE, not merely your payroll withholding, should come off of your "Gross Income" figure; then other statutory deductions; then you have correct "Net Income," for calculating CS. 

In theory, this "error" would affect any Payer of CS who itemizes on their (his) tax return.  Do this:  Get one pay stub out.  Then look at Circular E (on irs.gov) or federal tax brackets (irs.gov) and calculate your correct Net Income.  If it's lower than what's reflected on your paystub, and your CS is based on the paystub's "Net Income" number, PLEASE REPLY HERE.  I need more supporting scenarios before I take this to the Attorney General and press.



Thank you!
Julia Smithson