What Counts as Income for Child Support Purposes?

 Posted on May 21, 2024 in Child Support

Child support is calculated based on the obligor’s income. The obligor is the parent who pays child support. To find out how much child support your child’s other parent owes, you will need to know how much money he makes. Some sources of income that are not taxable can be counted as income when calculating child support. Your child should not receive less financial support from a parent who has the means to pay more simply because he receives income or other payments that are not counted as income for tax purposes. The law considers your child’s other parent’s ability to pay based on all the money he has coming in each month. An Arlington Heights, IL child support lawyer can help you find out how much your child’s other parent owes.

Sources of Income That Count Toward Child Support 

Your co-parent’s wages earned through employment are likely his main source of income. Income reported on a W-2 certainly counts as income when calculating child support, but there are many other possible sources of income that could count towards his child support obligations. Other sources of income include:

• Gifts - If your co-parent receives gifts of money, these gifts count towards what he owes in child support. This prevents parents who are financially comfortable due to family wealth from avoiding child support payments by treating the family money they can access as “gifts” from their relatives. 
• Personal injury settlements - Many personal injury settlements and workers’ compensation awards compensate the receiving party for lost wages. These replacement wages count as income for child support purposes. 
• Investment income - The income your co-parent receives from his investments may be substantial. Some people are able to live off investment income rather than working. 
• Self-employment income - If your spouse earned income as an independent contractor or from a “gig,” this income counts toward his child support obligations. For example, if he drives for Uber, makes deliveries through Amazon Flex, or occasionally does some work as a handyman, this income counts. 
• Trust distributions - If your co-parent receives distributions from a trust, your child is entitled to a portion. 
• Employment perks - Employment-related perks like a company car, company housing, or bonuses all count toward the amount of child support your co-parent owes. 

Almost all sources of income or money your co-parent receives will count toward his child support obligations.

Contact an Arlington Heights, IL Child Support Lawyer 

Law Offices of Donald J. Cosley is committed to helping parents ensure that their children are receiving all the money they are entitled to from the other parent. Experienced Cook County, IL child support attorney Don Cosley will handle every aspect of your case personally. Contact us at 847-253-3100 for a complimentary consultation.