I am wondering exactly how net income is figured? Is net income the same as or different from take home pay? Can his aflac insurance and retirement savings and credit union and christmas club (and whatever else!) be deducted first, or do they only deduct certain mandatory things first and then figure Child Support? I'm wondering because I have a lot of my own voluntary deductions and it makes my take home pay much smaller than my gross pay. How do they figure the 20%? 20 percent of what. Let's say his gross is 1,000 weekly. THANK YOU!
Net income is gross income minus social security, medicaire, and fica. Anything that is not a mandatory deduction does not reduce gross income. For example:
Weekly Gross Pay $1,000.00
Federal Withholding $161.13
Social Security $62.00
NET INCOME = 735.37.
In Illinois, 750 ILCS 5/505 defines net income as:
(3) "Net income" is defined as the total of all income from all sources, minus the following deductions:
(a) Federal income tax (properly calculated withholding or estimated payments);
(b) State income tax (properly calculated withholding or estimated payments);
(c) Social Security (FICA payments);
(d) Mandatory retirement contributions required by law or as a condition of employment;
(e) Union dues;
(f) Dependent and individual health/hospitalization insurance premiums and life insurance premiums for life insurance ordered by the court to reasonably secure child support or support ordered pursuant to Section 513, any such order to entail provisions on which the parties agree or, otherwise, in accordance with the limitations set forth in subsection 504(f)(1) and (2);
(g) Prior obligations of support or maintenance actually paid pursuant to a court order;
(h) Expenditures for repayment of debts that represent reasonable and necessary expenses for the production of income, medical expenditures necessary to preserve life or health, reasonable expenditures for the benefit of the child and the other parent, exclusive of gifts. The court shall reduce net income in determining the minimum amount of support to be ordered only for the period that such payments are due and shall enter an order containing provisions for its self-executing modification upon termination of such payment period;
(i) Foster care payments paid by the Department of Children and Family Services for providing licensed foster care to a foster child.
The above are the only deduction applied under ILLINOIS law. Voluntary deductions are not allowed for the purposes of child support. Most non-custodial parents can deduct federal taxes, state taxes, Medicare, Social Security, Health Insurance premiums, involuntary retirement contribution required by law and Union Dues. Most other deductions are rare. Seek the advice of an experienced, local family law attorney if you need more help.
This response shall not be construed as specific legal advice and does not create an attorney-client relationship or privilege. Further, this response is not intended to solicit legal fees.
read the statute that the other lawyer posted. then deduct only those things from your gross. aflac, christmas club and whatever else you deduct is not deducted for child supt. purposes.
if you get a tax refund, then you are over whithholding taxes and the amount of the refund gets divided by 52 and added back in each week. the case is pylawka.
if you owe taxes when you file your return, you are not having enough withheld each week. so divide the amount of the tax on the return that you owe in addition tothe withholding by 52 and subtract from your gross.
it is 20% of net which is not the same as your take home pay on your pay stub.
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