How can I handle a net operating loss carryforward?
A net operating loss carryforward is an anticipated tax deduction in excess of regular taxes calculated by Family Law Software. If you want to focus on the income aspect, you can override the "Other income" line on View/Edit Taxes for each year in which the loss will be carried forward. Enter the amount of the […]
How do I handle reimbursement from marital property for the expenditure of marital assets for separate purposes?
This is the situation where a party has spent marital funds for separate purposes. The classic example involves a spouse who spends money on a party outside the marriage. The other spouse wants to be reimbursed for that expenditure. If the marital property division is 50/50, the amount to be reimbursed is half of the […]
How do I handle reimbursement from marital property for the expenditure of separate assets for marital purposes (Epstein credits)?
This covers the situation where a party has spent separate funds for marital purposes. And now that party is being reimbursed from the marital assets for that expenditure. This can happen if, for example, post-separation income is used to pay marital debts. In California, this reimbursement is known as “Epstein Credits.” If the property division […]
How can I handle the reimbursement (equalization) in a situation in which the wife has given separate property to the husband (or vice versa)?
Just specify that the separate property is given to the other party. Then the situation is automatically reflected on the Marital Property Division screen. Let us illustrate in a case that has only one asset. It is a real estate property worth $500,000 (no mortgage, for simplicity), in which the wife has a $100,000 separate […]
How do I handle reimbursement from marital property for payment by husband of wife’s separate debt (or vice versa)?
Just specify that the debt is a separate debt of the wife, and that the husband will pay it, and then reach a 50/50 division in the Property Division worksheet as you normally would. Let’s explore how this works. To clarify, this is a situation where the husband is paying the wife’s separate debt from […]
How can I calculate Family Support?
“Family Support” is a calculation that is popular in California. It follows a California statute that allows people to designate payments from one spouse to another as “Family Support,” meaning an undifferentiated combination of child and spousal support. The hope is that this all will be taxed as spousal support, but that may not happen. […]
How can I calculate child support modifications if there is split custody (each parent is custodial for one or more children)?
Here are the steps to take: 1. Save the file under a different name. This will be a "what if" file. 2. In this file, indicate that the oldest child is not of an age to be eligible for child support, by clearing the "Eligible Age" box shown below: 3. See what the […]
How should I handle Health Savings Account (HSA) and Flexible Spending Account (FSA) balances?
Our approach to Health Savings Account and Flexible Spending Accounts is as follows: 1. When the contribution is made, we treat it as a deduction. Enter it in the appropriate living expense category (health insurance or child care, usually), and choose a tax category of "FSA, Flex, Caf Etc." 2. When the actual expenditure out […]
How can I specify local city wage taxes?
Some municipalities, particularly in Ohio and Pennsylvania, levy city wage taxes. These taxes are a percent of gross wages paid to people who work in the cities. To enter a city wage tax, click "more info" on the line where you enter wages. You will see an entry for local wage tax there. Separately, New […]
How do I change the first year (current year) for child support calculations, cash flow, taxes, etc.?
Click Files & Settings > Settings > Assumptions, and change the Start Year.