If you are a divorced parent, you probably recognize your responsibility for helping to provide financially for your child. In most Illinois cases, the parent with fewer parental responsibilities and less parenting time is obligated to make child support payments to the other parent. While the law that dictates the calculation of such payments is set to change at the beginning of 2017, the current statute takes into account two primary factors: the number of children being supported and the net income of the supporting parent. But, what does net income include?
According to the Illinois Marriage and Dissolution of Marriage Act, net income is defined as the “total of all income from all sources” minus certain allowable deductions. By law, these deductions include:
- Properly calculated federal taxes;
- Properly calculated state taxes;
- Social Security/FICA payments;
- Retirement contributions required by law or as a condition of employment;
- Union dues;
- Premiums for health insurance;
- Premiums for life insurance ordered by the court to secure child support payments;
- Previous obligations for child support and spousal maintenance;
- Obligations for maintenance as part of the current divorce proceedings; and
- Expenditures required for the production of income, such as student loans.
In most cases, the calculation of net income is fairly straightforward. Most supporting parents generate income through hourly wages or a regular salary, and the deductions are relatively easy to determine. In other situations, however, things can become much more complex.