Child Support Payments

Current Child Support Payments (Not Arrearages)

A current month child support payment that is received timely is considered income to the child.

  • A $50 disregard is allowed from current child support payments.
  • One-third of the current child support payment made to a disabled child must be disregarded.

Delayed Past Month Payments Paid Timely But Received In A Subsequent Month (Not Arrearages)

Past month child support payments that were paid timely but received in a subsequent month for a child under 18 years of age are considered income to the child.

In order for a disregard to be applied for past month payments, both of the criteria listed below must be met:

  • The payments for past months are received by the MFBU family member in the current month, and
  • The past month payment was made by the absent parent in the month the payment was due.

ExampleExampleIn June a family member receives a child support payment for May. The absent parent made a direct payment to the LCSA on May 25th; however, the payment was not sent to the family by the LCSA until June 3rd. This is considered a delayed, past month payment, not arrearages; therefore, the disregard would be allowed.

Disregards are not to be allowed on delayed past month payments unless the following criteria are met:

  • The agreement or court order specifies a payment schedule which requires annual, semi-annual, quarterly or other multiple month payments for reasons other than payment of past due amounts.
  • Payment is made but not received due to circumstances beyond the control of both the absent parent and the MFBU family member. Such circumstances include, but are not limited to the following:
    • Payment is made timely to the LCSA or court and not passed on to the MFBU family member until a subsequent month.
    • Payment is made through payroll deduction or garnishment of wages and is not forwarded to the MFBU family member until a subsequent month.

Child 18 or Older

For a child over 18 years of age, whether living with a parent or not, child support payments are treated as follows:

  • Any amount of the payment that the parent receives and does not give to the child is considered income to the parent.
  • Any amount of the payment that the parent gives to the child is considered income to the child in the month given, and is not income to the parent.
  • When a child receives a delayed, past month child support payment directly from the absent parent, the past month payment is income to the child.
  • A $50 child support deduction would apply, unless the child is disabled, then one-third of the child support payment may be disregarded.

Arrearage Payments

All current, delayed, and arrearage non-exempt child support payments provided either voluntarily or by court order are considered unearned income. Child support is not considered to be a nonrecurring lump sum social insurance payment.

Treatment of Arrearage Payments for a Child 18 or Older

Child support payments paid on behalf of a child 18 years of age or older that are not paid on time are treated as follows:

  • Any amount of the payment that the parent receives and does not give to the child is income to the parent.
  • Any amount of the payment that the parent gives to the child is income to the child in the month given, and is not income to the parent, unless given to the child in a later month.
  • When a child receives a child support arrearage payment directly from the absent parent, the arrearage payment is income to the child.
  • The $50 or one-third child support deduction does not apply.

ExampleExample

A non-custodial father pays child support arrearages to his ex-wife, on behalf of their 19 year old son who still lives with his mother. She receives a $300 child support arrearage payment in July 2017. The arrearage payment was supposed to have been paid in January 2016. The mother keeps $100, and gives her son $200 of the child support payment in the same month she receives the payment. The $100 the mother keeps is counted as income for her, and the $200 given to the son is counted as income for the child. Because the payment was made in July 2017 instead of January 2016, this was not a current or delayed, past month payment, therefore NO disregard amount would be allowed.

Arrearages paid on behalf of a child UNDER 18 years of age are considered income when received by the parent or child and NO disregard is allowed.

Related Topics

Non-MAGI MC Income