Gross income under the Tennessee Child Support Guidelines is a simple, but powerful concept which is often misunderstood. Some Tennessee divorce lawyers only think about the tax return. Reviewing a tax return is only the first step. There are lots of additional categories of income included in gross income for child support in Tennessee not taxed on tax returns. One example may be dividend income from a municipal bond. Another may be distributions from a Roth IRA. Another may be certain forms of disability income. It just depends on the circumstances.
When in doubt, Tennessee divorce lawyers can seek the input and guideance from a forensic accountant. Forensic accountants provide valuable advice about investigating tax returns, financial statements, W-2s, 1099s, and other key financial documents to ensure that all of the income that is all income is included for Tennessee child support purposes.
Below lists all types of income which should be included within the meaning of gross income pursuant to the Tennessee Child Support Guidelines:
(3) Gross income.
(a) Determination of Gross Income.
1. Gross income of each parent shall be determined in the process of setting the presumptive child support order and shall include all income from any source (before deductions for taxes and other deductions such as credits for other qualified children), whether earned or unearned, and includes, but is not limited to, the following:
(iii) Commissions, fees, and tips;
(iv) Income from self-employment;
(vi) Overtime payments;
(vii) Severance pay;
(viii) Pensions or retirement plans including, but not limited to, Social Security, Veteran’s Administration, Railroad Retirement Board, Keoughs, and Individual Retirement Accounts (IRAs);
(ix) Interest income;
(x) Dividend income;
(xi) Trust income;
(xiii) Net capital gains;
(xiv) Disability or retirement benefits that are received from the Social Security Administration pursuant to Title II of the Social Security Act, whether paid to the parent or to the child based upon the parent’s account;
(xv) Workers compensation benefits, whether temporary or permanent;
(xvi) Unemployment insurance benefits;
(xvii) Judgments recovered for personal injuries and awards from other civil actions;
(xviii) Gifts that consist of cash or other liquid instruments, or which can be converted to cash;
(xx) Lottery winnings; and
(xxi) Alimony or maintenance received from persons other than parties to the proceeding before the tribunal.
Tennessee Child Support Guidelines, August 2008.
Memphis divorce attorney, Miles Mason, Sr., JD, CPA, practices family law exclusively with the Miles Mason Family Law Group, PLC in Memphis, Tennessee serving clients in Germantown, Collierville and the west Tennessee area. To learn more about Tennessee child support laws, read and view:
- Tennessee Child Support & Divorce Law Answers to FAQs
- How to Modify Child Support in Tennessee
- Tennessee Child Support Law Video Series
- Tennessee Child Support Resources
- Top 6 Tennessee Child Support Strategies