Illinois child support guidelines changed dramatically in 2017. Before then, we determined child support on Illinois based on a simple percentage of the non-custodial parent’s net income. In 2017, Illinois adopted our income-sharing approach. Illinois law considers: 1) the net income of both parents and 2) the number of overnights–when this is more than 146 for the non-residential parent.
* Child support can be set at a lower or higher amount (known as a deviation).
* Child support awards 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, is the amount to be paid for child support predictable?
Mostly. The Illinois income sharing law provides guidelines for child support. Yet current Illinois law presents a host of problems. This makes it difficult to accurately determine the appropriate child support award.
Is “net income” the same as take home pay?
No! Illinois’ child support law is complex. Net income is NOT just based on the net shown on a paycheck.
How is net income now determined in Illinois divorce and paternity cases?
Illinois law uses two approaches to determine net income under the income-sharing law. Illinois law calculates child support based on tax calculations that are 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. It makes assumptions such as filing as a single taxpayer that often are incorrect and can result in the underpayment of child support–especially in cases involving 50/50 parenting time.
It also assumes the use of the standard exemption. It does apply the applicable number of exemptions. 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 it wasn’t included in the conversion tables. Calculation of the allowance is complicated. The number of the children and the amount of the annual income affect the value. This is why family lawyers use a program such as Family Law Software to accurately determine child support rather than using the estimator. The estimator provides results that are simply not accurate. It only provides an estimate.
What’s this about an “Individualized Tax Amount”?
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. Yet doing this is complex under our income-sharing amendments. This is because the Illinois child support guidelines consider the income from both parents.
What is not considered income under the income-sharing guidelines?
There are certain exceptions for what does not 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.
Illinois law defines the 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. 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.”
Illinois law also does not allow a deduction for business expenses that are determined to be “inappropriate or excessive.” 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 the issue of 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, the underlying support order, etc.
If my income fluctuates, will my child support be based on an average of past income?
Perhaps. Child support is often based on current income (year-to-date earnings). These are then projected 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 demonstrate whether or not there are 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 complex. 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. Because of these complications, 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.
Proactive advice from an experienced matrimonial lawyer in this regard is essential.
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 there may be an exception. The parties can voluntarily bypass the required payments through the SDU where there is 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.”