Illinois child support guidelines changed dramatically in 2017. Before then, we determined child support in Illinois based on a simple percentage of the non-custodial parent’s net income. Illinois now follows an income-sharing approach. The Illinois guidelines consider: 1) the net income of both parents and 2) the number of overnights–when the non-residential parent exercises at least 146 overnights.
* Child support can be set at a lower or higher amount (known as a deviation).
* Illinois courts normally require that each parent to pay some of the children’s health care, childcare, education, and extracurricular expenses.
In an Illinois divorce or paternity suit, can we predict the amount of child support?
Mostly. The Illinois income sharing law provides guidelines for child support. Yet current Illinois law presents a host of problems because of their complexity.
Is “net income” the same as take-home pay?
No! The Illinois guidelines do not use the net income shown on a paycheck.
So how do we determine net income in Illinois’ divorce and paternity cases?
We follow two approaches to determine net income under the income-sharing law. Illinois law calculates child support based on tax that’s either:
- Standardized or
- Individualized.
Explain how the standardized tax amount works:
Determine Federal and State taxes not based on the actual amount paid in taxes. Standardized taxes assume a filing as a single taxpayer. But this assumption often is wrong, and this mistake can result in the underpayment of child support–especially in cases involving 50/50 parenting time.
See: 2024 Addendum to the Illinois Schedule of Basic Obligations and Standardized Net Income Table.
2024 Chart for Conversion of Gross to Net Income.
Does the Standardized Tax Table Consider which parent is allocated the under-age 17 child tax credit?
No. You can’t accurately calculate taxes without considering this credit. Yet the Illinois standardized tables don’t include this credit because of the complexity. The number of the children and the amount of the annual income affect the value. Therefore, Illinois’ lawyers rely on Family Law Software to accurately determine child support rather than using an estimator. The estimator provides inaccurate results. It only provides an estimate.
Explain what “Individualized Tax” means.
This approach uses the actual taxes that are paid (but not taxes withheld on a pay stub). It’s far more accurate. And Illinois lawyers use this approach because it’s fairer to each party. It considers all relevant tax attributes. This includes:
- Each parent’s filing status;
- The actual allocation of the dependency exemptions (and with it the under-age 17 child tax credit);
- Whether a party claims the standard or itemized deductions.
Is income from overtime, second jobs, bonuses, and commissions considered “income?”
Yes. Illinois law considers income from all sources including overtime, bonuses, etc. And it considers income from both parents when calculating support.
What’s not considered income under the income-sharing guidelines?
Illinois provides that certain types of income don’t constitute income. Goss income does not include benefits received by the parent from means-tested public assistance programs.
The guidelines also do not consider as income “benefits and income received by the parent for other children in the household.”
I am self-employed and have overhead expenses. Can I deduct from my gross income my overhead expenses?
Yes, if done correctly. The best advice: run the business like a business. Keep personal items separate from business expenses. Under our Illinois income sharing law, a self-employed individual can deduct business expenses.
The Illinois support guidelines define net income from the operation of a business. This means gross receipts minus ordinary and necessary expenses required to carry on the trade or business. An ordinary expense is one that’s common and accepted in the industry.
Just as the law defines income broadly, it defines a business broadly. It applies to:
- sole proprietorships,
- closely held corporations,
- partnerships,
- flow-through business entities, and
- self-employment.
What about depreciation expenses? Are they deductible.
Yes, but… The law does not allow a deduction for the “accelerated component of depreciation.”
The Illinois support guidelines don’t allow a deduction for “inappropriate or excessive” business expenses. This applies to both depreciation and other expenses.
Are perks included as income?
Yes. The Illinois income sharing guidelines provide that perks are income. It includes as income an “in-kind payment received by a parent from a business, including, but not limited to, a company car, reimbursed meals, free housing, or a housing allowance.” The court examines whether the item:
- Is significant in amount; and
- Reduces personal expenses.
Under the Income Sharing Amendments, how far do the charts go up for the net income?
The charts go up to $300,000 of net income per year ($25,000 per month.). Once net income goes over this amount, consult with a lawyer. The court has discretion. The approach in these cases varies.
In addition to child support, can the child support payor be required to pay other expenses of the children?
Yes. The usual add-ons to the basic child support obligation are reasonable:
- Reasonable school expenses;
- Extracurricular activity expenses.
The other add-ons are allocated between the parents include:
- Childcare expenses;
- Health care needs not covered by insurance.
The income-sharing law in Illinois is complex regarding when addressing the allocation of childcare expenses, health care needs, and health insurance. Advice from counsel is necessary to address nuances.
Does child support stop at age 18 of a child?
Not exactly. The law provides that support generally terminates at age 18 or of a child is still attending high school up to age 19. Consult with a lawyer to determine when child support terminates. This varies depending on the language of the settlement agreement and the underlying support order.
If my income fluctuates, will my child support be based on an average of past income?
Perhaps. We often base child support on current income (year-to-date earnings). Next, we project current income to year end when an individual receives a steady paycheck, but the amount has risen in the current year. Income tax returns (and the year-end pay stub) for the last few years may show bonuses or other variable income.
Yet if the income varies significantly from year to year, there had been two approaches:
- The base-plus-percentage approach; and
- An income-averaging approach.
Under our income-sharing law for child support, things are complicated because Illinois child support law considers the income of both parents. And the percentage differs depending upon the income. The support obligor pays relatively higher percentages at lower income levels. Support payors pay relatively lower percentages at higher income levels. Therefore, Illinois divorce courts often use income-averaging. This approach uses an average income over a period such as the last three years. Yet the period selected should be representative of likely future income.
Therefore, get advice from an experienced matrimonial lawyer in this regard.
Must child support be payroll deducted?
Yes, but… Child support must be withheld from the obligor’s employment income and paid through the State Disbursement Unit (SDU) when: 1) the recipient is receiving public aid, or 2) support payments are made through income withholding. Yet the parties can voluntarily bypass the required payments through the SDU in cases involving a signed written agreement. This agreement must provide “an alternative arrangement, approved and entered into the record by the court, which ensures payment of support.”
