On January 1, 2011, two pieces of legislation will go into effect modifying some aspects of the child support guidelines.

Allowable daycare expenses

The child support guidelines allow for a credit to a parent who pays daycare expenses that are “work-related”. Currently, allowable daycare expenses are capped at up to no more than an annual total of $5,000 for one child, $9,000 for 2 children, and $12,000 for 3 or more children. For one child, the cap translates to about $416 per month. HB 1993 expands the definition of “work-related” to include daycare required for a parent’s education and training. In addition, the new law will remove the cap on allowable expenses, allowing a parent to claim all work-related daycare in the guidelines calculations.

Self-support reserve

Child support orders require that the obligor be left with a self-support reserve, i.e. a sum of money that the obligor will have to support him or her before paying out child support. Currently, the self-support reserve is $903 per month. On January 1, 2010, HB 1216 increases the self-support reserve to $1,038 per month.