Opinion ID: 2543667
Heading Depth: 1
Heading Rank: 6

Heading: Tax Returns as Evidence

Text: Few courts rely solely on personal income tax returns to determine the amount of income available for purposes of calculating support. Taxable income of a Subchapter S corporation which is attributable to a shareholder does not reflect actual income received as a cash distribution. Taylor v. Taylor, 118 N.C. App. 356, 364, 455 S.E.2d 442 (1995), rev'd on other grounds, 343 N.C. 50, 468 S.E.2d 33 (1996). Even in those states with particularized formulas for determining the income available to self-employed payors, the calculation of income is highly fact specific. Glass v. Oeder, 716 N.E.2d 413, 416-17 (Ind. 1999). There is no presumption that an individual's share of a Subchapter S corporation's income should be included as income for purposes of calculating child support. Individual inquiry on a caseby-case basis is necessary to ensure that the appropriate amount of income is considered received when determining Domestic Gross Income for the self-employed.