Based upon the change in the Statute, certain expenditures that were previously deducted are no longer deductible for purpose of setting a child support order.
No Longer Deductible
Unlike in the prior statute, union dues, student loans, and, under some circumstances, mandatory retirement contributions required by law or as a condition of employment are not deductible. 750 ILCS 5/505 (a)(3)(D) states that the individualized tax amount includes social security or self-employment tax if applicable (or, if none, mandatory retirement contributions required by law or as a condition of employment). So the Statute apparently only permits you to take a deduction if you are not deducting social security or self-employment tax. Some IRMF employment will deduct both social security and a pension. Under the new statute, these employments will not be able to deduct both.
medical expenditures necessary to preserve life or health, reasonable expenditures for the benefit of the child and the other parent, exclusive of gifts used to be deductible. Now they are a basis to deviate from guidelines rather than a deduction from gross income to calculate a child support obligations.
Prior support orders are now Adjustments to gross income 750 ILCS 5/505 (a)(3)(E) that will reduce the standardized or individualized tax amounts before child support is calculated. This is more of a change in terminology, as prior orders were always deductible. However, the new Statute does not distinguish between older and younger children.
Multi-family adjustment with court order: a deduction from net income in the amount of child support actually paid by a parent pursuant to a court order. This ends the first in time rule that previously held that a parent’s oldest children were a senior obligation, and their support was calculated without reference to support orders for younger children.
Illinois Senate Bill 69 (which has passed both house of the Illinois legislature but is not yet signed by the governor) added an adjustment for child support payment made without a court order. It does provide that the payment is for a presumed, acknowledged or adjudicated child living in or outside of that parent’s household. So this deduction is only available if the Father has some legal basis for supporting the child.
There is also an adjustment for spousal maintenance paid in the current case. Senate Bill 69 added an adjustment for a former spouse paid pursuant to a court order.
Business income is codified now as gross receipts minus ordinary and necessary expenses required to carry on trade or business. Reimbursement or in-kind payments are income and are included in the calculation if they are significant in amount and reduce personal expenses. A court has the authority to disregard a business deduction it believes was incurred unnecessarily or is unreasonable.
A minimum order increases from $10 per month to $40 per month. There is a rebuttable presumption that an obligor who makes less than 75 percent of poverty should pay the minimum.
However, it isn’t a true minimum. There is a presumption of a zero-dollar child support order for parents with no gross income, who receive only means tested assistance, who cannot work due to disability, incarceration, or institutionalization. Also for parents at 75 per cent of poverty guidelines and multiple obligations, a maximum obligation of $120 per month divided equally among all of his or her children.
The new Statute provides for imputing income to a parent who is voluntarily unemployed or underemployed. It is calculated on the basis of a determination of potential income.
Factors for potential income: work history, occupational qualifications, prevailing job opportunities, ownership by a parent of a substantial non-income producing asset, and earnings level in the community.
Insufficient work history creates a rebuttable presumption that an obligor’s potential income may be 75 percent of poverty guidelines and therefore, would be a support order of $40 per month.