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Committee moves ITL on bill to let child-support payers claim child tax credit; concerns over fairness and low payments prevail
Summary
Representative Barton's House Bill 322 would give a parent paying child support the exclusive right to claim the child as a dependent for tax-credit purposes; the committee voted ITL after testimony that low support amounts and judicial discretion already address allocation fairly.
Representative Barton, prime sponsor of House Bill 322, said the 2018 federal tax change that ended a payer's ability to deduct child support left payers unfairly taxed on money they must earn and remit. "Since 2018, child support payments are no longer tax deductible," Barton told the committee, arguing that payers who provide the financial support "ought to at least take the child's tax credit" when they are the primary financial supporter.
Committee members pressed the sponsor on fairness in low-payment orders (for example, payments of $50 per month) and on whether family courts already allocate tax dependency through parenting plans and universal support orders. Representative Gregg asked whether a parent paying small amounts should be able to claim the child; Barton replied that courts already determine income disparity and that low-dollar payments are "pretty moot" compared with the scale of the tax credit.
Mary Krueger (New Hampshire Legal Assistance) and other witnesses highlighted the potential harms and loss of judicial flexibility, noting courts already resolve who claims dependents in decrees and that mandatory statutory allocations could create unintended consequences for low-income families and survivors.
Representative Rice moved to recommend ITL on HB 322; the motion passed in executive session (roll call recorded; the committee placed the bill on consent). The clerk administered a roll call during which many members registered their votes to support ITL; the committee then closed the executive session.
Ending: The committee voted to recommend ITL and to place HB 322 on consent for the next stage; sponsors may rework the concept or pursue narrower alternatives.
Sections: lede: sponsor argued payers are taxed unfairly after 2018 federal change; nut graf: court discretion and low-dollar orders prompted questions; body: public testimony and motion to ITL; ending: ITL carried and bill placed on consent.
