Bill Text: IN SB0310 | 2011 | Regular Session | Introduced
Bill Title: Claiming a child as dependent for tax purposes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-10 - First reading: referred to Committee on Judiciary [SB0310 Detail]
Download: Indiana-2011-SB0310-Introduced.html
Citations Affected: IC 31-9-2; IC 31-14-11-2.5; IC 31-16-6-1.5;
IC 31-25-4-13.1.
Synopsis: Claiming a child as dependent for tax purposes. Requires
a court to specify in a child support order which parent of a child may
claim the child as a dependent for purposes of federal and state taxes.
Establishes factors the court must consider in determining which parent
may claim the child as a dependent. Requires a court that specifies that
the noncustodial parent of a child may claim the child as a dependent
to order the custodial parent of the child to take all actions necessary
to release the custodial parent's claim to the exemption in the manner
required under federal law. Requires the court to order a parent who is
ordered to pay child support to meet certain other requirements before
the parent may claim the child as a dependent. Provides that a
prosecuting attorney or private attorney who contracts or agrees to
undertake activities required under Title IV-D of the Social Security
Act is not required to mediate, resolve, or litigate a dispute between the
parties relating to the assignment of the right to claim a child as a
dependent for federal and state tax purposes.
Effective: July 1, 2011.
January 10, 2011, read first time and referred to Committee on Judiciary.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
family law and juvenile law.
(b) In determining which parent may claim the child as a dependent under subsection (a), the court shall consider the
following:
(1) The value of claiming the child as a dependent at the
marginal tax rate of each parent.
(2) The income of each parent.
(3) The age of the child and the number of years that the child
could be claimed as a dependent.
(4) Each parent's percentage of the costs of supporting the
child.
(5) If applicable, the financial aid benefit for postsecondary
education for the child.
(6) If applicable, the financial burden each parent assumed
under the property settlement in a dissolution proceeding.
(7) Any other relevant factors.
(c) If a court specifies that the noncustodial parent of a child
may claim the child as a dependent for purposes of federal and
state taxes, the court shall order the custodial parent of the child
to take all actions necessary to release the custodial parent's claim
to the exemption in the manner required under Section 152(e) of
the Internal Revenue Code.
(d) If a court determines that a parent who is ordered to pay
child support may claim the child as a dependent under subsection
(a), the court shall include in the order that the parent may claim
the child as a dependent for federal and state tax purposes only if
the parent:
(1) has paid the parent's child support obligation for the
calendar year for which the parent is ordered to claim the
child as a dependent by December 31 of that year; and
(2) has not been more than twelve (12) weeks in arrears on
child support payments in the calendar year for which the
parent is ordered to claim the child as a dependent.
(b) In determining which parent may claim the child as a dependent under subsection, the court shall consider the following:
(1) The value of claiming the child as a dependent at the marginal tax rate of each parent.
(2) The income of each parent.
(3) The age of the child or children and the number of years that the child or children could be claimed as a dependent or
dependents.
(4) Each parent's percentage of the costs of supporting the
child or children.
(5) If applicable, the financial aid benefit for postsecondary
education for the child or children.
(6) If applicable, the financial burden each parent assumed
under the property settlement in a dissolution proceeding.
(7) Any other relevant factors.
(c) If a court designates that the noncustodial parent of a child
may claim the child as a dependent for purposes of federal and
state taxes, the court shall order the custodial parent of the child
to take all actions necessary to release the custodial parent's claim
to the exemption in the manner required under Section 152(e) of
the Internal Revenue Code.
(d) If a court determines that a parent who is ordered to pay
child support may claim the child as a dependent under subsection
(a), the court shall include in the order that the parent may only
claim the child as a dependent for federal and state tax purposes if
the parent:
(1) has paid the parent's child support for the calendar year
for which the parent is ordered to claim the child as a
dependent by December 31 of that year; and
(2) has not been more than twelve (12) weeks in arrears on
child support payments in the calendar year for which the
parent is ordered to claim the child as a dependent.
(b) The bureau shall make the agreements necessary for the effective administration of the plan with local governmental officials within Indiana. The bureau shall contract with:
(1) a prosecuting attorney;
(2) a private attorney or private entity if the bureau determines that a reasonable contract cannot be entered into with a prosecuting attorney and the determination is approved by at least two-thirds (2/3) of the Indiana child custody and support advisory committee (established by IC 33-24-11-1); or
(3) a collection agency licensed under IC 25-11 to collect arrearages on child support orders under which collections have not been made on arrearages for at least two (2) years;
in each judicial circuit to undertake activities required to be performed
under Title IV-D of the federal Social Security Act (42 U.S.C. 651),
including establishment of paternity, establishment, enforcement, and
modification of child support orders, activities under the Uniform
Reciprocal Enforcement of Support Act (IC 31-2-1, before its repeal)
or the Uniform Interstate Family Support Act (IC 31-18, or IC 31-1.5
before its repeal), and if the contract is with a prosecuting attorney,
prosecutions of welfare fraud.
(c) The hiring of a private attorney or private entity by an agreement
or a contract made under this section is not subject to the approval of
the attorney general under IC 4-6-5-3. An agreement or a contract made
under this section is not subject to IC 4-13-2-14.3 or IC 5-22.
(d) Subject to section 14.1 of this chapter, a prosecuting attorney
with which the bureau contracts under subsection (b):
(1) may contract with a collection agency licensed under IC 25-11
to provide child support enforcement services; and
(2) shall contract with a collection agency licensed under
IC 25-11 to collect arrearages on child support orders under
which collections have not been made on arrearages for at least
two (2) years.
(e) A prosecuting attorney or private attorney entering into an
agreement or a contract with the bureau under this section enters into
an attorney-client relationship with the state to represent the interests
of the state in the effective administration of the plan and not the
interests of any other person. An attorney-client relationship is not
created with any other person by reason of an agreement or contract
with the bureau.
(f) At the time that an application for child support services is made,
the applicant must be informed that:
(1) an attorney who provides services for the child support bureau
is the attorney for the state and is not providing legal
representation to the applicant; and
(2) communications made by the applicant to the attorney and the
advice given by the attorney to the applicant are not confidential
communications protected by the privilege provided under
IC 34-46-3-1.
(g) A prosecuting attorney or private attorney who contracts or
agrees under this section to undertake activities required to be
performed under Title IV-D is not required to mediate, resolve, or
litigate a dispute between the parties relating to:
(1) the amount of parenting time or parenting time credit; or
(2) the assignment of the right to claim a child as a dependent
for federal and state tax purposes.
(h) An agreement made under subsection (b) must contain requirements stipulating service levels a prosecuting attorney or private entity is expected to meet. The bureau shall disburse incentive money based on whether a prosecuting attorney or private entity meets service levels stipulated in an agreement made under subsection (b).
