What Does “Income” Means When It Comes to Child Support?

The goal of considering income in child support calculations is to ensure that both parents contribute proportionally to the financial support of their child, taking into account their respective abilities to pay. “Income” in the context of child support refers to the financial resources that a parent has available to contribute to the support of their child. This can include various sources of income, such as:

• Wages and salaries: This is the most common form of income and includes earnings from employment, including regular wages, bonuses, commissions, and tips.
• Self-employment income: Income derived from owning and operating a business or being a freelancer or contractor.
• Investment income: Income from investments such as dividends, interest, rental income, and capital gains.
• Retirement benefits: Income from pension plans, 401(k) plans, Individual Retirement Accounts (IRAs), and Social Security benefits.
• Unemployment benefits: Income received from unemployment insurance or other government assistance programs.
• Disability benefits: Income from disability insurance or other disability benefits.
• Workers’ compensation: Income received as compensation for work-related injuries or illnesses.
• Alimony or spousal support: Income received from a former spouse as part of a divorce settlement.

Each jurisdiction has specific guidelines and rules regarding what constitutes income for child support purposes. Additionally, certain deductions or adjustments may be allowed to account for expenses related to earning income, including taxes, compulsory retirement contributions, and health insurance premiums.

What is not considered income for child support purposes?

When calculating child support, certain types of income or benefits may not be considered as part of a parent’s income. Some common examples of income that may not be considered for child support purposes include:

• Means-tested public assistance: Income from means-tested public assistance programs, such as Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), and Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps).
• Child support received for other children: Child support payments received for children from a previous relationship are typically not considered as income for the purpose of calculating child support for the current case.
• Income of a new spouse or partner: Income earned by a parent’s new spouse or partner is generally not considered in child support calculations unless the new spouse or partner contributes to the household expenses in a way that reduces the parent’s own financial obligations.
• Gifts and loans: One-time gifts or loans received by a parent are usually not considered as income for child support purposes unless they are received on a regular basis and intended to serve as income replacement.
• Inheritance: Inheritance received by a parent is typically not considered as income for child support calculations, although any income generated by the inheritance (such as interest or dividends) may be considered.
• Tax credits and refunds: Tax credits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit, and tax refunds are generally not considered as income for child support calculations.
• Insurance proceeds: Insurance payments received by a parent, such as life insurance or disability insurance benefits, are typically not considered as income for child support purposes.

Have Tennessee’s child support laws changed since 2020?

The Tennessee Department of Human Services (TDHS) made several revisions to the state’s child support guidelines to meet new federal requirements and improve the system for both custodial and non-custodial parents. Here are some examples of the changes made:

• Gross income includes total income from any source with the exception of certain itemized exclusions. Some examples include gifts or inheritance that produce income (real estate), income earned by an inmate while incarcerated, and gifts that lower a parent’s living expenses.
• Two exceptions to voluntary unemployment and underemployment now exist: 1) incarceration is no longer grounds of voluntary underemployment, and 2) a parent who has a decrease in income due to military enlistment or being drafted is not considered willfully underemployed.
• The updated guidelines allow a parent to receive credit for the child’s part of the cost of dental and vision insurance, along with medical insurance, if it is available at a
  “reasonable cost.” A cost is considered reasonable if it does not exceed five percent of the responsible party’s gross income. Only medical insurance is required if adding vision or dental insurance raises the total cost to over five percent of the parent’s gross income.
• The new guidelines include an adjustment for low-income parents called the Self-Support Reserve. The adjustment is based on the federal poverty levels. There is also a new “minimum order” of $100 per month. This serves as the floor with exceptions for cases where the only source of income is Supplemental Security Income (SSI), or when the child’s federal benefits or parenting time adjustment results in a reward less than $100.
• There are a few minor revisions to the child support worksheet, including

parents being identified as Parent 1 and Parent 2 to accommodate cases with same-sex parents.

Are deviations from the state’s child support guidelines allowed?

Tennessee courts have discretion to deviate from the state’s child support guidelines, but only under very limited circumstances. If you can show a different amount is in the best interest of the child and that the deviation is allowed by the guideline, then the court may grant a deviation. Some of the factors that the court considers are the relative economic circumstances of the parents, parenting time-related travel, and extraordinary expenses associated with the child.

The Knoxville child support lawyers at LaFevor & Slaughter are committed to helping families come to mutually beneficial decisions under challenging circumstances. We understand how emotional these issues can be and will represent the best interests of your child and your family. To set up a consultation with one of our attorneys, call or fill out our contact form today.