Child Support
A child support order is entered. You eventually adjust to receiving or paying child support. Months, then years pass. You ask yourself, " I wonder if it is worth the time and effort to review the support order?" The answer is "Yes". Many changes occur during your child's life. Incomes increase, child care expenses change, health insurance costs go up, your child becomes involved in expensive extra curricular activities, just to name a few. The Colorado legislative periodically adjusts the child support guidelines which are used in Colorado. It is not uncommon to see a child support order include a child care expense even though the child is 17 or 18 years old!
Many support orders in effect today are based on inaccurate income figures. Although child support can be modified, it cannot be modified retroactively. It is well worth it to consult with an attorney every year or two to make sure the child support order is accurate.
Social Security Disability
It is common for a disabled person to receive tens of thousands of dollars in back benefits after pursuing a successful claim for social security benefits.
Social security disability benefits are taxable, supplemental disability income benefits are not subject to income tax.
By February, of the year following the receipt of benefits, Social Security should send you a 1099 form showing the amount received and also listing the attorney fees you paid. The 1099 form is occasionally inaccurate, so it is very important to check it against the notice of award you received.
Children may receive a benefit based upon the disability of a parent. These benefits are income to your child and he or she will receive a separate 1099 form. The good news is that the entire award is not taxed.
Please consult with a tax professional after receiving the 1099 form to determine how to handle income taxes on lump sum benefits: how much of your ongoing benefit is taxable; deducting attorney fees; how to treat repayments to a long term disability carrier; and how to treat dependent benefits.
Jack LeProwse, PC Attorney | 7390 Lowell Blvd., Westminster, CO 80030
303-428-8576 | Fax: 303-428-8578
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