If child support is supposed to be 25% of the payer's income, help me figure out the right amount in this little fictional scenario here:
Gross annual income is 70,000
Allow about 15% for taxes (down to 59500 annually, 4960 per month)
Health, dental and life insurance, 401k, etc. comes to 250/month (making the net income 4710 per month)
Now, if 25% is supposed to go to child support, would that be 25% of 4960 (monthly child support 1240) or 25% of 4710 (monthly child support approx 1175)?
I know, it's confusing... I've done several drafts of this question to try to make it as understandable for you as possible, and so that I can understand your answers. LOL
Basically, is the amount figured up using income before benefits are taken out, or after?
2007-12-18 03:00:16 · 13 answers · asked by CrazyChick 7 in Family & Relationships ➔ Marriage & Divorce
25% is the amount, in Texas, when you have two children.
2007-12-18 03:06:48 · update #1
Pitching: Okay, first, I don't really need someone to be condescending, okay?
Second, I got the 25% amount from my husband's divorce lawyer.
Third, I'm not trying to make this about me, I know it's not. But I do know I need to be able to have some general idea of how to put together a budget, and that's hard to do when your income can swing by as much as 400 dollars a month.
It has nothing to do with thinking it's about me, and not the kids.
Your supposed "answer" is not appreciated.
2007-12-18 03:12:20 · update #2
Hi Mandy, I think it really depends on which state you are in, but usually it is Gross, before anything is taken out. Before taxes or benefits. Your state should have a schedule that you can look at. I live in Washington state and we are pretty tough enforcing child support laws, You pay that before anything else.
2007-12-18 03:04:14 · answer #1 · answered by houndypoundy 2 · 0⤊ 0⤋
The laws of most states determine the amount to take 25% from after taxes. If the insurance premiums are taken out as part of a Section 125 "cafeteria plan" (pre-tax), then the "net income" would be reduced by that much. Legally, any pre-tax deduction CANNOT count towards the "net income," from which 25% would be calculated, except retirement contributions, which are in many states specifically excluded from this.
Ethically, I'd say that if the health, dental and life insurance covers the children, you would not count those premiums as part of the income, because those premiums are already benefitting the children. If you health, dental and life insurance premiums don't benefit the children, then ethically you should calculate it based on the income before those premiums are paid.
I'd answer that in most cases, the amount you're looking at is 25% of $4710, or $1175 per month.
2007-12-18 11:06:58 · answer #2 · answered by Scotty Doesnt Know 7 · 0⤊ 0⤋
I do payroll for my store and it's dependent on each individual case but I think the answer to your question is that the 25% is taken from the actual paycheck (what is left over after all the taxes and other stuff). If someone is behind in child support though, the bureau that handles it will up that percentage (I have some employees that are so far behind that after all their taxes and insurance I have to take 55% of their remaining paycheck.) Hope this answers your question.
2007-12-18 11:07:19 · answer #3 · answered by mel_adramatic1981 2 · 0⤊ 0⤋
In Illinois the amount is after taxes and insurance but not after 401K- and in IL for 2 kids it's 28% but that figure is the minimum- it can be more than that depending on the circumstances.
2007-12-18 11:06:18 · answer #4 · answered by LB 6 · 0⤊ 0⤋
Well - I don't know what state you are in and where you came up with the 25% - but in most states the calculation is completely different... There is no set percentage and other expenses such as food - rent - car payments - even entertainment is added in to see how much income is really available. The it is compared to the other parents income and expenses... I would suggest find a lawyer in your state or country and have them figure it out for you...
2007-12-18 11:05:31 · answer #5 · answered by Me 4 · 0⤊ 0⤋
Before benefits such as 401K, CDs, etc. is how it is to be figured. Do not include health, dental, life insurance, especially if he is carrying the children on the insurance, since they are receiving the benefits.
2007-12-18 11:15:02 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Dear girl,
Where is it written that it's 25%. Not in my state or any I'm aware of. It varies by the number of children you have and many other factors. Remember too, it's for the child. Not for the mother.
2007-12-18 11:07:42 · answer #7 · answered by Anonymous · 0⤊ 1⤋
it is based on his GROSS. 401k, taxes ect do not matter. In most states, he gets a credit towards the support if he is covering the kids under his health insurance.
2007-12-18 12:56:14 · answer #8 · answered by sugarpie2 5 · 0⤊ 0⤋
it is based on net income, after taxes but before any benefits or electives come out.
2007-12-18 11:09:24 · answer #9 · answered by VILLAGE PEOPLE 2 · 0⤊ 0⤋
am not sure about texas but i think it works this way: gross, less alll taxes, insurance, 401k (as long as its mandatory) then take the 25%. you may find your exact answers at http://www.oag.state.tx.us/cs/index.shtml good luck.
2007-12-18 17:49:50 · answer #10 · answered by Anonymous · 0⤊ 0⤋
I googled and came up with this site for you...
http://www.alllaw.com/calculators/childsupport/texas/
This should help with your figures. It varies from state to state
2007-12-18 11:21:59 · answer #11 · answered by SWEETYPI 4 · 1⤊ 0⤋