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Because when your living at the homw with the child and supporting them, the child only see's the net income and not the gross income.

2006-11-25 07:11:25 · 3 answers · asked by ♥!BabyDoLL!♥ 5 in Business & Finance Taxes United States

3 answers

How do you define net income? You can easily reduce the size of your paycheck without changing your true pay any number of ways. The easiest is to change your W-4 to withhold more for taxes. This results in a smaller paycheck and a larger refund. Are 401(K) contributions included in net income? My employer allows my to have part of my pay deposited directly into any checking or savings account I designate. Does that change net income? Using gross income avoids all these questions.

2006-11-25 11:37:18 · answer #1 · answered by STEVEN F 7 · 0 0

everything goes off of gross because some people pay more on taxes and get more back so the gross is the only fair way for everyone

2006-11-25 15:13:30 · answer #2 · answered by scottb03gt 4 · 0 0

It's the fairest way. There are many ways of hiding money.

2006-11-25 15:24:25 · answer #3 · answered by Anonymous · 0 0

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