Child Support: The Computation of Net Verse Gross Income
Under the Family Code 4059 the legislature has made a determination of what consists of net income in determining Child support obligations. At the Orange County Child support Law Office of David P Schwarz we can defend you in any case seeking to take child support from you without using the proper legal procedures. Please call us at 949 735 9266 or via the web or email at dpslaw firstname.lastname@example.org.
To determine what the Family law Courts use in determining income for child support payments they must first determine what is gross income verse what is net income. An Orange County Child support income attorney will analyze all income documents to determine what deductions from gross income are properly made so that the Child Support Court can get a accurate determination of your true gross income.
The state and federal income tax is the first deduction that occurs from the gross income. It is important to note that the federal and State deductions must reflect what your tax status is. This means that how you file for example, single , joint or head of houesold must be reflected in these deductions.
In addition at the Orange County Child support Law office of David P Schwarz we will help you determine the number of dependents that you must claim on the federal and state income tax documents and also child support purposes.
In determining what deductions a party will take to determine your true net income it must be an actual payment you are making to the IRS not a withholding.
An Orange County child support attorney will also make sure that the FICA deduction is used properly to determine your true net income. FICA is the employers’ contribution or the self-employed worker's contribution to the Federal Insurance Contributions Act (FICA). This deduction cannot be more that is legally permitted by the IRS. The amount deducted cannot exceed what Federal Insurance Contribution act permits.
In addition the Orange County child support lawyer will assist you in determining what is a mandatory verse elective contribution to your retirement or 401k. Many people come to my office and ask this question. Mandatory retirement or union dues is a deduction against gross income. This means that the employer makes the employee take these deductions as a condition to be employed.
Another major deduction parties can take against their gross income is that of health insurance. A party can deduct health insurance premiums against their income. That means all the children you pay health insurance for are deductible.
The next deduction is occurs when a party has a legal obligation to pay child support or spousal support to another party not part of the current litigation they are involved in regarding another child. That means they can get a deduction for the payments to the other exwife or child from another parent.
If your job requires certain unique expenses that are for the performance of you job you can deduct those expenses against your gross income.
An Orange County Child Support lawyer will assist you in determining if you qualify for a hardship deduction which entitles the parties to make deduction from their gross income. This hardship applies to the children you are taking care other than the child of the litigation going on. There is a formula that is used by the Family Law superior Court when applying the deduction against any gross income.