Annual Fee Information

➲ $35 Annual Fee

The Deficit Reduction Act of 2005, effective January 1, 2008, requires all child support programs to impose a $35.00 annual fee on all cases that meet the following criteria:

• The family has never received cash assistance benefits in any state; AND
• The custodial party received $550.00 or more during the federal fiscal year (FFY).

In Alaska, this federally mandated fee is imposed on the custodial parent. The fee does not fund the state program, it is retained by the federal Office of Child Support Enforcement.
Here are answers to some frequently asked questions:

• What is a “federal fiscal year”?
  The federal fiscal year begins on October 1 and runs through September 30 of each year. As soon as a custodial party receives $550.00 within a FFY, including the current FFY, CSED will collect $35.00 from the payment.
  
  
• How will the federal fee be paid?
  CSED will collect $35.00 directly from the child support payment after $550.00 has been sent to the family.
  
  
• Is there some other way to pay the fee? 
  No. The fee must be paid from child support collections.
  
  
• What if $550.00 is not collected during a federal fiscal year?
  The $35.00 fee will not be charged.
  
  
• What if more than $550.00 is collected in the FFY? Will CSED take the $35.00 fee more than once?
  The fee is no more than $35.00 per FFY.
  
  
• What if I have more than one case?
  If you have more than one case with CSED, the fee will be collected from each qualifying case.
  
  
• Does the non-custodial parent get credit for the fee collected from a support payment?
  Yes. Federal law requires that non-custodial parents receive full credit for support paid. For example, if $550.00 is sent to a custodial parent this FFY, the non-custodial parent is given credit for the $550.00.If another $100 payment is then received, the child support obligation is credited for the full $100.00 – CSED retains the first $35.00 to pay the fee and the remaining $65.00 is paid to the family.
  
  
• What if CSED takes the fee, but I previously received cash assistance in another state?
CSED does not have direct access to assistance information from other states. If you previously received cash assistance in another state, please contact your caseworker to discuss options. You may be eligible for a refund of the fee.

The full text of the 2005 Act can be found at https://www.gpo.gov/fdsys/pkg/PLAW-109publ171/pdf/PLAW-109publ171.pdf