Are Tax Refunds Considered Income When Calculating Your Child Support Payment?
This guide provides information about if and when your tax refund can be used as income in calculating the amount of child support you are required to pay.
Federal Tax RefundsGenerally, federal tax refunds are not to be included as income when determining your child support payment. Federal tax refunds are the return to you of an overpayment of taxes to the government. This money should have already been accounted for by looking at the rest of your income picture (for example, wages, salaries, bonuses, fees and commissions; net income from a business, interest, rents, royalties, worker's compensation, unemployment compensation, etc). The inclusion of your federal tax refund in the child support calculus may be grounds for a reduction in the amount you are obligated to pay.
State/Local Tax RefundsSometimes, state tax refunds can be included in your income for child support purposes. For instance, if you have itemized your deductions and claimed a state income tax deduction, that income is not taxed in the year earned. This scenario may possibly lead to a state tax refund being counted as income for child support purposes.
For specific advice about your scenario, you should consult a local attorney.