Every parent is obligated to financially support his or her child, regardless of who has custody. Child support is a legal obligation imposed on the non-custodial parent to provide financial support to the parent with primary custody. The financial contribution of the non-custodial parent is dedicated to the upbringing of the child.
A child support agreement could be made through informal negotiations outside the court setting or through a court order. Regardless of the approach used in making the child support agreement, the appropriate amount of child support has to be decided while keeping your respective state's guidelines in mind. These guidelines are influenced by the income of the involved parties. In other words, the amount of the child support depends primarily on the income of the parents. Income is not just basic salary and wage. Different funds are also considered income. It is important for the parents to understand what type of funds are classified as income according to the child support guidelines.
There is a misconception that the IRS considers child support as taxable income. This is incorrect. Child support payments are not subject to tax. When you calculate your gross income, you should not include received child support payments.
Due to an ever-changing financial situation, the amount of child support payment may be modified. If you can no longer afford to pay the amount that was initially agreed upon, you may ask for a modification of the agreement. Hiring professional counsel for advice might be in your best interest. An attorney may be able to help you exercise your rights regarding child support laws.