In all other cases, the basic child support obligation is computed using the combined adjusted gross incomes of both parents. Expenses incurred in the exercise of visitation are not factored into the Schedule. If the custodial parent has no income tax liability. Income The Schedule of Basic Child Support Obligations is based upon net income converted to gross annual income for ease of application. For the purposes of these Guidelines, 'income' is defined as actual gross income of the parent, if employed to full capacity, or potential income if unemployed or underemployed.
All income is assumed to be taxable.
Gross income of each parent should be determined as specified below. Specifically excluded from ordinary and necessary expenses for purposes of these Guidelines are amounts allowable by the Internal Revenue Service for the accelerated component of depreciation expenses, investment tax credits, or any other business expenses determined by the Court to be inappropriate for determining gross income for purposes of calculating child support. In general, income and expenses from self-employment or operation of a business should be carefully reviewed to determine an appropriate level of gross income available to the parent to satisfy a child support obligation. In most cases, this amount will differ from a determination of business income for tax purposes. Such payments might include a company car, free housing, or reimbursed meals.