States that use Sandardized Income Tax Calculation?

Edwards Finance > Loans

Q. California uses a computer program to figure actual income taxes, which are then subtracted off the gross income to yield net income, after which the CS guideline formula is applied. In Delaware, they dispense with the computer and just use single with one exemption to compute the taxes, regardless of actual status. So you can look it up on a simple tax table. I don't have the time now to explain why this might be more fair, but it should be clear that the standardized calculation in effect bases CS on gross income regardless of actual exemptions and such. I'd like to know what other states that have net income guidelines use the Single-1 standardized income tax approach. I'd especially like any analysis showing their rationale for doing so.

A. My Husband is currently involved in a fight for our financial existance because of the way Minnesota calculates his tax liability. Since he is now remarried, the court has ruled that he must use the tax amounts on the Federal and state withholding tables at the Married with 3 deduction level (himself, me and my son). Of course this withholding amount is way out of line with the taxes he actually pays and substantially raises his child support obligation. The points we are currently trying to make to the court are these: First, I have a career and support myself and my son (I receive 1/4 the amount of child support that my husband pays). Those 2 tax decuctions are mine, not his. Second, as any married couple knows, when both people work the tax withholding tables go out the window. If my husband had tax withheld at M3, he would owe a couple thousand dollars at the end of the year. The net effect of all this is that he pays child support for his two children at an effective rate of 51% of his takehome pay. Since he was laid-off last fall and has found a new job at a 30% pay cut (at the same time his child support obligation went up $185 a month), this will put us under financially if courts don not use his actual tax liability. We'd like to hear from anyone else who has had to present this argument!

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