What Is Considered “Income” When Calculating Child Support?
July 29, 2024
Child support provides financial assistance for the child's living expenses and ensures that the child receives adequate support from both parents. The calculation typically depends on both parents' income. Knowing what counts as income can help avoid disputes and promote fair contributions.
Types of Income Considered for Child Support
Below are various income sources that are commonly considered when determining child support obligations:
Employment Income
The most obvious source of income is a parent's salary or wages. Whether you're working full-time, part-time, or even on a contractual basis, your earnings from employment are included in child support calculations. This includes:
Base salary or hourly wages
Overtime pay
Bonuses and commissions
Self-Employment Income
For those running their own businesses or working as freelancers, self-employment income is also considered. This can be more complex to calculate since it may include various expenses and deductions. However, gross income before expenses is typically the starting point.
Investment Income
Investment income, such as dividends, interest, and capital gains, is included when calculating child support. This ensures that all sources of financial gain are accounted for, providing a comprehensive view of a parent's financial situation.
Non-Traditional Sources of Income
Non-traditional sources of income are also considered when calculating child support. These include
Rental Income
If you own rental properties, the income generated from these properties is considered part of your total income. This ensures all financial resources are considered when determining child support obligations.
Alimony and Spousal Support
Alimony or spousal support received from a previous marriage is also considered income to ensure that all available financial resources are included in the calculation. However, alimony or spousal support paid by a parent is not considered income and is factored in as an expense.
Social Security and Disability Benefits
Social Security benefits, including disability benefits, can provide a significant source of income and are necessary for accurate assessment. This ensures that a parent's disability or retirement does not unfairly reduce the financial support provided to the child.
Exclusions from Income in Child Support Calculations
Certain types of income are excluded from child support calculations. These include:
Public Assistance
Public assistance benefits, such as Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP), are excluded from child support calculations. These benefits are designed to assist low-income families and are not considered income for support purposes.
Child Support from Previous Relationships
Child support received for other children is not included in income calculations, so support for other dependents is not impacted. This ensures that the financial needs of all children are met without diminishing resources unfairly from any child.
Non-Income Benefits
Non-cash benefits, such as food stamps and housing subsidies, are not considered income because they assist with specific needs and are not direct financial resources. Also, non-cash benefits may not always be available for the entire support period and are therefore excluded from income calculations.
How Pennsylvania Law Defines Income for Child Support
Understanding how Pennsylvania law defines income for child support is necessary for accurate and fair calculations.
State Guidelines
Pennsylvania law provides detailed guidelines on what constitutes income for child support purposes. These guidelines ensure consistency and fairness in support calculations. According to Pennsylvania law, income includes:
Salaries and wages
Bonuses and overtime pay
Self-employment income
Rental income
Investment income
Social Security benefits
Adjustments for Special Circumstances
The court may adjust income calculations for special circumstances, such as significant medical expenses or educational costs. This keeps child support obligations fair and reflects the parents' financial situation.
The court may also consider a parent's earning capacity rather than their actual income if they are voluntarily underemployed or unemployed.
Imputed Income in Child Support Calculations
Imputed income is income that the court believes a parent could earn based on their skills, education, and work history. This is used when a parent is unemployed or underemployed. Imputed income prevents parents from avoiding their support obligations by choosing not to work or working in lower-paying jobs.
Proof of Income
Proof of income is necessary for accurate and transparent child support calculations. It includes:
Employment documentation: This includes pay stubs and tax returns to verify income.
Self-employment records: For self-employed individuals, providing business records, tax returns, and profit and loss statements is necessary to verify income.
Investment and rental income statements: This includes bank statements, investment account statements, and rental income records.
Government benefit statements: This includes Social Security or disability payments, which are essential to account for all sources of income.
Documentation of other income sources: This includes any court orders or agreements specifying the terms and amounts received.
Speak With a Family Law Attorney in Canonsburg, Pennsylvania
At the Law Office of MariAnn Hathaway, we carefully assess your case and work with you to achieve a peaceful resolution. We offer high-quality and compassionate legal services while respecting your time and budget.
MariAnn's calm demeanor and personal approach make you feel supported every step of the way. Call today to discuss your case and learn how we can help you get the best possible support for your child in Canonsburg, Pennsylvania, and throughout Washington County.