Understanding Self-Employment Income for Child Support or Alimony
Hi, my name is Clint Hastings. I’m a Tulsa alimony attorney here in Tulsa, Oklahoma, and I focus on fathers’ rights.
An issue that comes up a lot and leads to many questions is how self-employment income is treated, especially when calculating child support or alimony.
Income Definition for Child Support
For child support, self-employment income is defined by statute, which includes various sources such as business operations, independent contracting, sales of goods or services, and rental properties. Deductions for ordinary and necessary expenses are allowed to determine the net income.
It’s important to note that deductions for child support purposes may differ from IRS rules. While IRS deductions like depreciation are permitted for tax purposes, they are not considered when calculating child support obligations.
Documented Business Expenses
When determining self-employment income for support purposes, the court focuses on actual expenses rather than potential deductions like depreciation. Keeping detailed records of business expenses is crucial to accurately present your financial situation to the court.
Opposing counsel may request documentation such as receipts and invoices to verify your business expenses. Collaboration with your attorney and tax preparer can help ensure that the court receives an accurate representation of your self-employment income.
Consultation for Personalized Guidance
If you have any further questions or would like personalized guidance on your self-employment income for child support or alimony, please contact Tulsa men’s child support attorney Clint Hastings for a low-cost consultation at 918-962-0900.
