2.07Allowable Deductions from Income

2.07(A)Alimony/Spousal Support

(1)Deduct alimony/spousal support paid to someone other than the other parent in the case under consideration from its payer’s income after deducting federal, state, and local income taxes, and deducting other mandatory federal taxes (e.g., FICA).

(2)Alimony/spousal support paid between the parents in the case under consideration is not included as its recipient’s income, but remains its payer’s income.

2.07(B)Income and FICA/Medicare Taxes

(1)Deduct a parent’s actual income taxes from income.

(2)If tax returns are not made available, taxes should be estimated based on the best available information and the estimation procedures described below.

(3)In the absence of an explicit written agreement or order to the contrary, presume that the person with whom the child resides for the majority of a calendar year claims the dependent tax exemption for that child.

(a)In determining filing status (Single or Married), presume the status most consistent with each parent’s situation.

(b)Use income tax guides to determine the taxes deducted from gross earnings for a parent’s actual number of dependent exemptions.

(c)To the extent possible, estimate taxes at rates that the parent would likely pay for the income types attributed to that parent.

2.07(C)Deduct any mandatory payments as a condition of employment (e.g., required union dues and nondiscretionary retirement contributions).

2.07(D)Deduct life insurance policy premiums when children-in-common with the other parent are the beneficiaries.

(1)Only deduct term life insurance premiums paid on coverage ordered by the court.

(2)With whole life insurance policies that provide coverage ordered by the court, only deduct an amount equivalent to the cost of the same amount of term life insurance.

2.07(E)Deduct the cost of care or services paid by a parent to comply with case service or permanency plan requirements in child protective or juvenile delinquency proceedings.

2.07(F)   Deduct a parent’s net actual cost of providing mandatory health care coverage for himself or herself. Calculate this deduction by figuring the net health care premiums [costs minus any reimbursements, subsidies, or credits] paid by the parent and dividing by the number of individuals covered (including the parent).

2.07(G)Do not include employer reimbursements for the actual costs incurred for travel (subject to §2.01(M)), tuition, educational costs, and uniforms as income..