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Adjusted Gross Income for Child Support Purposes: additional monthly expenses that can be applied to reduce a parent’s gross income

on in Family Law

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The Illinois Income Share Model has gone into effect, and as previously discussed in our most recent blog entry, both parents’ gross income must be determined for purposes of calculating their child support obligation. However, the statute now provides for various deductions to be applied to a parent’s gross income before a parent begins their child support calculation. This is important, as we previously discussed in our most recent blog, because a parent’s gross income will help determine a parent’s net income and based upon the total combined available net income of both parents, we will calculate what percentage each parent will be responsible to provide support.  Hence, if a parent’s gross income is reduced from the get-go, it will in effect also reduce a parent’s net income therefore potentially reducing a parent’s contribution to child support. Bear in mind that this reduction in child support is not meant to allow parents to evade their child support obligation, rather, it is meant to consider what other obligations a parent may have that affects the available net income the parent has to contribute towards child support.

Pursuant to the Illinois Income Share statute, a parent’s gross income may be adjusted as follows:

1.     If a parent is also legally (i.e court ordered support obligation)  responsible for the support of another child (or children), and that child is not involved to the present court matter;

a.     the parent may deduct the actual amount of child support as required by court order; and/or

b.     the parent may deduct the amount of financial support “actually paid by the parent for children living  in or outside of the parent’s household”; or

c.      if there is no court ordered child support, the parent may deduct 75% of the support the parent would pay for a child under the child support guidelines (whichever is less). 

 

2.     A parent may deduct a court ordered maintenance obligation (also known as alimony). 

For example, assume Parent A makes $50,0000.00 gross per year, but Parent A has two other children with Parent C (via a separate court case) and has a court ordered child support obligation to pay $300.00 per month, and Parent A also pays Parent  C $150.00 per month as for maintenance. Parent B has one child with Parent A, and Parent B earns approximately $30,000.00 gross per year, and Parent B is the majority parent. As noted above, Parent A may deduct $5,400.00 ($3,600.00 as for yearly child support +$1800 for yearly maintenance) from his or her gross of $50,000.00, leaving Parent A with a yearly gross of $44,600.00. Assuming we use the standardized tax deduction calculation, Parent A’s net income per Chart 1 (“Gross to net Income Conversion Table Using Standardized Tax amounts”) is equal to $2899.00 (had Parent A not received the above mentioned deductions, Parent A’s net income would have been $3218.00), and Parent B’s net income is set at $2,073.00. The total available net income is $4,972.00 where Parent A holds 58.30% of the shared income and Parent B holds 41.69% of the shared income.  We then go to Chart 2, “Income Shares Schedule Based on Net Income” where we see that based upon the total combined amount of available net income, the required amount of support for 1 child is $936.00 per month. Hence, Parent A shall contribute $545.68 per month and Parent B shall contribute $390.21 per month.

As can be seen above, it is very important to accurately calculate and examine a parent’s income and potential deductions so as to accurately calculate a parent’s support obligation. The attorneys at Serrano Low & Hanson can aid you in the representation of your child support matter. Schedule a consultation today by calling Serrano Low & Hanson at 630-844-8781. We are happy to assist our clients for matters arising in Kane, Dekalb, DuPage and Kendall County.

Sources:
http://www.ilga.gov/legislation/publicacts/99/PDF/099-0764.pdf

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2086&ChapterID=59

http://www.slhlawfirm.com/images/easyblog_images/229/Gross-to-Net-Income-Conversion-Table-Using-Strandardized-Tax-Amounts_20170620-145641_1.pdf

http://www.slhlawfirm.com/images/easyblog_images/229/Income-Shares-Schedule-Based-on-Net-Income.pdf

Disclaimer: This article/blog was written by an attorney from Serrano Low & Hanson and is accurate and true to the best of our knowledge, but there may be omissions, errors or mistakes. This article/blog (or the reading of this article/blog) does not create an attorney-client relationship, and the attorneys at Serrano Low & Hanson do not represent the readers of this blog.  The legal information contained within this blog/article is meant solely for informational purposes and is not meant to be legal advice nor a legal assessment of an individual person’s case matter; hence, you should consult with an attorney before you rely on this information.

 



 

 

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