How Do I Calculate Disposable Net Income for Child Support Payments?
Child support payments vary in a few ways. Payments often depend on the state in which the court-mandated payment decision was established. Payments also depend on the amount of net disposable income the payee earns. For example, if the payee earns less than $1,000 a month, the state may have a number of exceptions in place that allow the payee to pay a smaller percentage than other payees. Before this can be determined, a payee's disposable net income must be calculated.
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Instructions
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1
Write down the amount of money you earn a month after taxes and paycheck deductions. This amount should be the amount of money you actually deposit to your bank each month after being paid.
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2
Subtract the amount of health insurance you pay per month, if it is not already directly deducted from your paycheck.
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3
Deduct any child support or spousal support already being paid to another party.
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4
Subtract valid job-related expenses. The court has the final say in what it deems to be a job-related expense. The court determines the necessity and the benefits of these expenses when deciding.
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5
Subtract union dues if they are not automatically deducted from your paycheck.
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6
Subtract a special hardship deduction, if allowed by the court. The court may allow special hardship deductions when significant amounts of money are spent on healthcare expenses or catastrophic loses. The court determines the amount you may subtract.
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7
Calculate the total in Step 1 minus the amounts in Steps 2 to 6. The answer is the disposable net income that is used to calculate child support.
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