Median Family Income Determination
My question involves bankruptcy in the state of: WA
I am looking at filing a chapter 7. My child support payments don't come out of my pay or go through the state. Our agreement for support is filed with the court. My problem is the way we split dependents for income tax purposes; alternating 1 and 2 each year. How can I offset my income,or can I, showing my support payments or total number of dependents. If unable to offset income or show 3 dependents I am over median income level.
Re: Median Family Income Determination
Whatever arrangement to the contrary you may have reached in your divorce settlement, your kids either qualify as your dependents or your ex's dependents under the rules the IRS would be applying but for your agreement to alternate your claims. So under the IRS rules, who qualifies?
Re: Median Family Income Determination
Last year I claimed 1 of our 3. This year I can claim 2 of our 3. Either way I believe I am below the threshold.
I got remarried in June and my new wife and I have kept our finances separate. I have no clue where her income goes nor do I particularly care. I do however need to 'exclude' her income during this process as she is (with the exception of some groceries) a non-contributor to the household.
Re: Median Family Income Determination
I hope that you are discussing the income issue with an attorney. The rules look at the total household income, there are ways to exclude or take a marital adjustment if one spouse doesn't pay towards the household, etc. but the districts all vary based on case law. Definately not something to go alone. What may work in Florida, may not work in North Carolina and so on...
Good luck!!