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joe-1338
New Member

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

 
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7 Replies
joe-1338
New Member

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

That money came out of my bank act by Soc. services and was not paid to employee. Therefor I don't consider it as income.

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

"income"?  You mean income to the employee?  It's certainly not income to you.  Yes it is income to the employee.  You paid it for his benefit.  Hopefully you included it when you took out the federal/state withholding and SS/Medicare deductions.
joe-1338
New Member

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

Do you have any idea what your talking about???  Child support comes out of an employee's check to be payed to the other parent who is taking care of the employee's child. It is a mandated amount from child services that HAS to be taken out of the employee's check. So therefor the employee DOES not get that income.
Hal_Al
Level 15

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

It doesn't matter that you don't consider it income. The IRS does consider it income, even if you don't understand the rationale. That's why accountants take 4 years to graduate.

You've had two (about to be 3) experts tell you that is income to the employee. I could get a dozen more to tell you the same thing.

He had "constructive receipt" (in IRS lingo) of the money. Furthermore, child support is neither deductible by the payer or taxable to the recipient.

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

Of course it is income to the employee.  It simply was garnished before he received it.   It makes no difference if he received the money and used it to pay his debt - either way is it taxable income to him.    They could not garnish is it the first place if it was not his earned income and of course he must pay tax on that income whether he receives the money of not.  Child support is not "before tax" money it is always "after-tax" money.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

He doesn't get it in his NET PAY but it's like any other regular payroll deduction.  It's just another deduction.  It's still part of his GROSS PAY.  You wouldn't be able to send it to Child Support unless it came out of his checks.  It is an Expense to HIM not you.  On your books and tax return you expense it as part of payroll not as a separate bill you pay.  But if you want to be nice and not charge him for it then be nice.  Where else are you going to put it?  Are you going to give the other parent a W2?

The employee is not getting the other deductions you take out either.  Like Fed w/h and SS/Medicare.  You take those out of his checks and send it the IRS and SSA.  FICA (SS/Medicare) is also a mandated amount.  Nothing different about Child Support.
Hal_Al
Level 15

I took out money from an employee's check for court ordered child support. Do I include that on that persons w-2 form?

Yes, that amount should be included in box 1, box 3 and box 5 of the employee's W-2.

You may make a notation in box 14 about the child support deduction. That is optional and not required by the IRS

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