CS & the self-employed

[kelmomof4]

What is the name of your state (only U.S. law)? MO
How is income figured for the self-employed? Meaning what "allowable for taxation purposes" write-offs would be figured in as income. Thank you in advance.

[LdiJ]

Originally Posted by kelmomof4

What is the name of your state (only U.S. law)? MO
How is income figured for the self-employed? Meaning what "allowable for taxation purposes" write-offs would be figured in as income. Thank you in advance.

Net income from self employment is generally what is used, which is income after expenses.

However, sometimes depreciation and other non-cash expenses are added back into income for child support purposes...or if you get a forensic accountant involved (very expensive) they can sometimes ferret out fake expenses.

[CJane]

Originally Posted by LdiJ

Net income from self employment is generally what is used, which is income after expenses.

However, sometimes depreciation and other non-cash expenses are added back into income for child support purposes...or if you get a forensic accountant involved (very expensive) they can sometimes ferret out fake expenses.

Per my caseworker here in MO, all that is allowed to take as a deduction is actual cash expenses - something with a receipt to back it up.

And, if the amount claimed as income is significantly less than that person could make doing the same job as an employee, then an income will be imputed to them based on Dept of Labor statistics for that job in a given area.

So, let's say a truck driver claims that after all of his deductions, he made ... $1 last year, but as a company driver with his experience, he could make around $60K annually. CSE will impute the $60K income to him.