What are Unreimbursed Business Employee Expenses in New York Child Support and Maintenance?

Divorce or family law issues for unmarried people is a complicated time for any couple, but situations can become far more complex when children are added into the mix. Not only do New York divorce attorneys and the New York Supreme or Family Courts need to determine who should provide care for those children in terms of custody, but they must also decide whether and what child support should be given from a non-custodial parent. If child support is awarded, then the New York Courts may use a range of factors to determine exactly how much should be given. The decision comes from a careful consideration of both the payor’s income, the custodial parent’s income, the child support guideline’s and reasons to deviate from the guidelines.

Before a payor’s income can be used to calculate child support payments, certain deductions may be applied to the total earning potential of the individual. The New York Child Support Standards Act provides a formula based on percentage of income, to determine exactly how much support should be paid. Deviations from the guideline amount of support can be argued or negotiated by family law attorneys or divorce lawyers. The Child Support Standards Act indicates that there are numerous things that can be deducted from a person’s income before the formula is applied, including:

  • Maintenance/ alimony to be paid to the current spouse
  • Maintenance/ alimony paid to a previous spouse
  • Child support paid pursuant to a written agreement or court order for a child for whom the parent already has a duty of care.
  • Supplemental security income
  • Public assistance payments
  • New York City earnings or income taxes paid
  • Federal insurance contributions act taxes paid
  • Unreimbursed employee business expenses

This blog will briefly discuss, what are unreimbursed business employee expenses?

Defining Unreimbursed Business Employee Expenses

Most professionals will examine their unreimbursed business expenses when preparing their tax returns. With them, it is possible to reduce tax liability by claiming deductions the IRS permits. Unreimbursed business expenses usually appear on the schedule A section of the tax return, and they’re designed to allow today’s employees to claim the money that they used to carry out their profession and was not provided by an employer. Essentially, unreimbursed business expenses include any expenditure made for a job that’s both reasonable, ordinary, and not reimbursed by an employer.

In 2018, the nature of tax deduction for unreimbursed business expenses seems to be changing. The Tax Cuts and Jobs Acts means that many of the miscellaneous itemized deductions that were previously available to reduce tax bills might be gone – including unreimbursed expenses generated by employees.  Consult with your tax advisor about the new tax law as I do not give tax advice.

However, though the tax situation has changed, unreimbursed business expenses are still considered from a child support payment point of view at the time of this blog. This means that the court may still consider the payments that would be classified as unreimbursed business expenses. Some of the expenses that apply in this situation may include dues for professional societies, educational expenses, legal fees related to a job, home office expenses, occupational taxes, tools and supplies used in work, union expenses, travel and transportation feels, uniform expenses, passport costs for a business trip and many more.

Calculating Child Support

In the New York Courts, unreimbursed business employee expenses are just one of the many things that your child support and divorce attorney may argue for what is to be considered when attempting to calculate an individual payor’s income for support purposes. There are also a range of other allowable deductions to consider, as mentioned above, and the circumstances for each case can vary. Indeed, determining what should count as an allowable deduction or income is one of the most complex parts of calculating a child support obligation. Once those numbers are clear, however, it’s possible for the courts to apply the formula for child support clearly and establish a guideline for how much a parent should pay to support their youngster.

If you’re in the middle of a child support case, or you’re beginning your divorce procedure and want to be prepared for the complexities of child support, it’s important to speak to a lawyer who specializes in child custody and divorce law. Mr. Darren M. Shapiro is available to help from his family law and mediation office in Nassau County. Please reach out to discuss your specific circumstances on 516-333-6555, or book your initial consultation of up to thirty minutes free.