How is 'net income' defined in the state of Pennsylvania for use in caculating Child Support?

Asked over 1 year ago - Havertown, PA

There's 'gross income' which is all proceeds earned minus taxes and other standard deductions. There's 'adjusted gross income' which is gross minus deductions such as mortgage interest, child dependence allowances, contributions to retirement funds, etc. I'd imagine adjusted gross would also include other allowable business deductions that would be filed on Schedule C? What exactly is net income for calculating child support? Is it the same as adjusted gross minus paid taxes? Would net income include deductions for Retirement accounts or health insurance premiums? Would it include all business deductions claimed, or only those absolutely necessary to run the biz, I am under the impression that net income for child support is not the same as adjusted gross minus taxes. Is this true?

Attorney answers (2)

  1. Alyssa Harland Knisely

    Contributor Level 6

    Answered . Net income is gross income less any and all mandatory deductions. Taxes, union dues, health insurance premiums, pension/ retirement account contributions all may be mandatory and thus reduce gross income.

    Responses on AVVO do not create an attorney-client relationship. You shold consult with counsel for a full review... more
  2. Sheryl R Rentz

    Pro

    Contributor Level 6

    Answered . Income is defined as your gross income minus reasonable and necessary taxes and business expenses. Health insurance is only considered if it is insurance for the children. The only other considerations are mandatory retirement deductions, union dues etc. The courts also consider daycare costs and who is paying the costs and who is paying the marital mortgage.

    Call an attorney and have them review with you the statute defining income and the way support is calculated.

    Sheryl R. Rentz
    326 West Lancaster Ave
    Suite 100
    Ardmore, PA 19003
    610-645-0100

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