7225 Child Support Deduction - Child support payments paid by a household member to or for a non-household member, provided the household member has a legal obligation to pay child support and the payments are verified in accordance with 1322.2 (3). The deduction is allowable even if the income used to pay the expense is excluded. (Example: 17-year-old full-time high school student with earned income has wages garnished for child support.)
Households that fail or refuse to obtain necessary verification of their legal obligation or of their child support payments shall have their eligibility and benefit level determined without consideration of a child support deduction.
If the noncustodial parent makes child support payments to a third party (e.g., a landlord or utility provider) on behalf of the non-household member in accordance with the support order, such payments shall be included in the child support deduction. In addition, legally obligated payments that are made by the household to obtain health insurance for the child or children shall also be included as part of the child support deduction.
The agency shall allow a deduction for amounts paid toward arrearages (including mandatory interest) with the exception of amounts collected through tax intercept since these amounts are taken from a lump sum which is otherwise exempt. Alimony payments made to or for a non-household member shall not be included in the child support deduction.
Also, refer to 9121 or 9122 regarding change reporting requirements for the child support deduction.
When determining a prospective amount for the child support deduction, the following provisions shall apply:
For households with a history of 3 or more months of paying child support, the agency shall average at least 3 of the most recent consecutive months of child support, and use that average as the household's child support deduction.
For households with no child support payment record or less than a 3-month record, or a change in the legal obligation is reported, the agency shall estimate the anticipated payments (excluding payments toward arrearages) and use that estimate as the household's child support deduction.
Refer to 7124 for averaging and prospective budgeting procedures for child support income.
NOTE: A child support deduction is allowable even when the child for whom the support is paid is a household member, if the legally obligated child support payment is made to an individual or agency outside the household (e.g., CSS, or other parent when the child moves back and forth between households). The child support payment IS deductible even when we consider child support the income of the child who is living in the home. Even though the child support deduction is allowed, the child support income is NOT counted as income again, since we have already counted the income of the parent who paid the child support. Also see 6220(4)(d).
NOTE: Garnishment fees charged by employers are not allowable as part of the child support deduction.