footprints Posted December 30, 2008 Share Posted December 30, 2008 Does anyone know how they determine child support if your self-employed, i was told it was line -150 of your tax form, net income. Others have told me it is business income. Does anyone know? Link to post Share on other sites
Gunny376 Posted December 30, 2008 Share Posted December 30, 2008 Not sure about the self employeed, but as a general rule you can kiss 25% of your net income goodbye for one or two children, even more if there are more than two. I've seen women bagging as much as 80% of the man's net income, (Stupid Bastard got three differnt women Pregno!) for child support! Link to post Share on other sites
LEANER1 Posted December 31, 2008 Share Posted December 31, 2008 I am also self employed and pay child support for 1 child. They go by my gross income after write offs and adjust it according to the mothers income. I believe it is close to 20% +/-. Good luck and hope it helps ................. leaner Link to post Share on other sites
Author footprints Posted December 31, 2008 Author Share Posted December 31, 2008 I am also self employed and pay child support for 1 child. They go by my gross income after write offs and adjust it according to the mothers income. I believe it is close to 20% +/-. Good luck and hope it helps ................. leaner ok, im a little confused, you say gross income after write offs. Do you mean net income? Wouldnt gross income be before the write offs? Link to post Share on other sites
carhill Posted December 31, 2008 Share Posted December 31, 2008 The formulas vary by jurisdiction. Allowances are generally made for ordinary and necessary business expenses, along with a modifier related to FICA income. I'm unclear on allowances for depreciation (paper expenses) but that's what accountants and lawyers are for However, since the OP is in Canada, my miniscule knowledge of the US tax code (I do our business taxes) just went out the window. Link to post Share on other sites
LEANER1 Posted December 31, 2008 Share Posted December 31, 2008 Sorry for the confusion. As an example, lets say you bring in a total of $100k. After write offs for the business you bring home $60k. This is what they look at for child support payments. Out of that $60k you also pay taxes. This is what you actually made for the year as income. KEEP RECEIPTS FOR EVERYTHING. Also, a good accountant is worth their weight in gold. Just find one that is familiar with your line of work, you may have to go out of state. It may help to look online. Please note that I am not an accountant or financial expert, I am just telling you what has worked for me. Hope this helps and good luck............ leaner Link to post Share on other sites
Trialbyfire Posted December 31, 2008 Share Posted December 31, 2008 http://www.divorceincanada.ca/Guidelines.htm#Income Just found this. It looks like business income, amongst other types of income. Link to post Share on other sites
Author footprints Posted December 31, 2008 Author Share Posted December 31, 2008 Thanks leaner and all that have replied, that clears things up a little better. Link to post Share on other sites
Author footprints Posted January 3, 2009 Author Share Posted January 3, 2009 Leaner1, sorry 1 more question, my wife is saying that i had some funny acounting going on im my returns, will the courts actually look into it or is the net income what they go by no matter what. Also the wife works in a restaurant for tips, cash money, do i have to prove how much she makes to fight off the alimony charges? thanks for any answers Link to post Share on other sites
LEANER1 Posted January 3, 2009 Share Posted January 3, 2009 Hey footprints, again, I am not an accountant or anything of the sort. As long as you have receipts and can validate every one you should have no problem. Be honest and thorough. As far as your wifes income goes, I believe she should be reporting her income (tips) to her employer on a daily basis. She should also be making some small hourly wage from her employer. Everything should be documented. I was taken to court for more child support about 1 1/2 yrs ago. I literally showed up with a shoebox full of receipts. They went through everyone and found nothing out of place. Be honest and you will be confident. You said 'funny accounting' in your last post, can you be more specific.................. leaner Link to post Share on other sites
BikerBeagle Posted January 3, 2009 Share Posted January 3, 2009 Generally speaking (I'm not an accountant or a lawyer), the courts will use your tax forms for previous 3-5 years as a basis to determine your income (gross income minus business expenses ...not so much net income as there are many things that can affect this) and will rarely question what you filed. In your wife's case, tips are rarely 'free money' ...she probably has to claim her tips to her employer as taxable income at the end of each shift, and this is reflected on her her check stubs (if she is a waitress ...exotic dancers, on the other hand, can make thousands $$ literally "under the table") =P. Any decent lawyer will be able to ascertain her legitimate income - with tips - even if that isn't the case (although, sadly, more often than not, simply requires an affidavit from her stating that she earns $xxx.xx in tips). Link to post Share on other sites
Recommended Posts