We see many experienced family law specialists make this common DissoMaster* mistake with the health insurance deduction.
When entering the Health Insurance deduction in DissoMaster,* be sure to drill down. There are three options and they make a difference: “paid by party”, “pre-tax wage deduction” or “wage deduction.” Getting it wrong can make a significant difference in the calculation.
Paid By Party
“Paid By Party” is for premiums paid by the party directly to the insurer after the Premium Tax Credit (PTC). This includes the advance PTC. Typically, this is used for self-employed individuals who pay their premiums directly to the insurer. Per the DissoMaster user manual, “[t]his is an income adjustment or an itemized deduction and a guideline deduction.”
Pre-tax Wage Deduction
“Pre-tax Wage Deduction” is for an employee’s health insurance contributions that are deducted pre-tax from the paycheck by the employer. This number affects the calculation for adjusted gross income and is also a guideline deduction for child support.
“Wage Deduction” is for entering the portion of the health insurance costs that is withheld from a paycheck on an after-tax basis or amounts paid directly to the insurer by a salaried employee. The software then treats the entire amount here as an itemized medical deduction, which would be on Schedule A.
Screenshot from the DissoMaster software showing the Health Insurance data entry
See the DissoMaster user manual under “Health Insurance” for more explanation.
So don’t be a DissoMaster dunce!
If you get it wrong, it can make a big difference in the support calculation. Make sure you are entering the health insurance payments correctly to ensure that you get the calculation right!
*DissoMaster is a trademark of The Rutter Group, a Thomson Reuters business. To purchase DissoMaster call The Rutter Group at (800) 747-3161 ext. 2 or visit CFLR for more information.
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