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Family Law Software can calculate child support guideline amounts in 21 states.

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Question: How did you get the tax rate you are using for the Spousal Support Present Value calculation?

Answer: We use the marginal tax rate on the theory that alimony income is marginal income.

It would be more theoretically correct to calculate the actual tax before and after alimony (taking account of the impact on exemption phase-outs, alternative minimum tax, etc.), and actually calculate the incremental tax as a percentage of the alimony income. That would give the "actual" effective tax rate on the alimony.

The only reason we don't do this is that most people like the simplicity of specifying a rate that is not calculated.

You can do the calculation specified above to find the "actual" effective tax rate pretty easily yourself. Look at the federal tax bottom line without alimony. Then enter the alimony and look at the federal tax bottom line. Change in federal tax / alimony = effective tax rate.

Then override the software to put in the "actual" effective rate that you have found


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