FAQs

Question: For New Jersey child support, which tax calculation method should I use: Appendix IX-H, Circular E, or actual taxes?

Answer:

Appendix IX-H and Circular E are tables that give a rough approximation of what taxes will be.

The state of New Jersey started using these tables (Appendix IX-H and Circular E) when tax calculations were not available.

Today there is no good reason to continue using them. However, the state still does.

Our software gives a much better estimate of what taxes will be if you choose "Actual."

On the other hand, because the state's child support calculation uses the tables, if you need to be in synch with the state's child support calculation, then pick one of the tables.

Because we think most people will want to be in synch with the state, we specify one of the tables. But please feel free to override and change to "Actual."

As between the two table approaches, here is how we decide whether to use Appendix IX-H or Circular E. In making this choice, we are following common practice (this is not a matter of statute or rule):

Following New Jersey common practice, we select Appendix IX-H, unless any of the following is the case:

• The party is filing jointly or has a new spouse.
• The party is head of household.
• The party has any business or self-employment income.
• The party has any alimony income.
• The party’s adjusted gross income is greater than $3,600 per week.
• The party has paid any alimony for this or a prior relationship.

If any of the above situations applies, we select the Circular E method.

You can see the calculation for each method, as follows:

1. Go to the page where you enter child support information.

2. Scroll down to the Deductions section.

3. In that section click the link for the Taxes worksheet.

4. On that worksheet, click the links for each method.