How is a parent’s income calculated for child support purposes?
The Court first determines the gross income of each parent and then subtracts allowable deductions from the gross income to derive net income.
Gross income shall include, but is not limited to, the following:
- Salary or wages.
- Bonuses, commissions, allowances, overtime, tips, and other similar payments.
- Business income from sources such as self employment, partnership, close corporations, and independent contracts. “Business income” means gross receipts minus ordinary and necessary expenses required to produce income.
- Disability benefits.
- All workers’ compensation benefits and settlements.
- Reemployment assistance or unemployment compensation.
- Pension, retirement, or annuity payments.
- Social security benefits.
- Spousal support received from a previous marriage or court ordered in the marriage before the court.
- Interest and dividends.
- Rental income, which is gross receipts minus ordinary and necessary expenses required to produce the income.
- Income from royalties, trusts, or estates.
- Reimbursed expenses or in kind payments to the extent that they reduce living expenses.
- Gains derived from dealings in property, unless the gain is nonrecurring.
Net income is obtained by subtracting allowable deductions from gross income. Allowable deductions shall include:
- Federal, state, and local income tax deductions, adjusted for actual filing status and allowable dependents and income tax liabilities.
- Federal insurance contributions or self employment tax.
- Mandatory union dues.
- Mandatory retirement payments.
- Health insurance payments, excluding payments for coverage of the minor child.
- Court ordered support for other children which is actually paid.
- Spousal support paid pursuant to a court order from a previous marriage or the marriage before the court.
Note: this post does not address the situation when a parent is voluntarily unemployed or underemployed. See separate post regarding imputation of income for more information. The post also does not address when a parent is incarcerated, retired or disabled and the child is receiving disability, or a parent receiving public assistance. For further information, see Florida Statutes, Section 61.30.
Comment by Steve: How the court applies the statutory factors and other considerations to each case may vary. Additionally, statutory factors can change over time. The content of this post is intended for general information and entertainment purposes only and does not constitute legal advice.