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I have been reading into case law regarding this matter and this is what I have found:
Child Care Expenses: In IRMO Stanley, 279 Ill.App.3d 1083, 216 Ill.Dec. 890, 666 N.E.2d 340 (4th Dist. 1996), one deduction from gross income was "day care contribution", per IRMO Serna, 172 Ill.App.3d 1051, 123 Ill.Dec. 164, 527 N.E.2d 627 (4th Dist. 1988). Stanley suggests in dictum that a justification for deducting the child care contribution is subparagraph (a)(2)(h) of §505, which authorizes a deduction for "reasonable expenditures for the benefit of the child and the other parent." Child care expenses are certainly reasonable expenses for the benefit of the child and the other parent. The problem is setting child support at a dollar certain while allowing a deduction for child care expenses in determining net.
In our case, we are not looking to to reduce the base child support amount, but make sure that we are making any and all allowable deductions from the 20% support from additional income.
So, this expense that is a reasonable expenditure for the benefit of the child and other parent is not applicable?
NO, not for reducing base support. However, my husband earns commisions in addition to his base salary. Per the MSA, he is to pay 20% of his additional income (which varies from month to month) minus the allowable deductions set forth in Section 505 of the Illinois Marriage and Dissolution Act.
He pays a pro rata portion of childcare; however, he is not able to deduct this on his tax return as he is not the primary custodial parent. His former wife can deduct the allowable amount of her daycare expenses on her return, however he cannot.
So, in calculating the 20% of additional support, whereas he can subtract health premiums paid in calculating his net income, we want confirmation as to whether or not he may also subtract his portion of child care expenses paid in calculating his net income for additional support based upon the defined allowable deductions.
Sorry if I was not clear. Can you confirm this based upon Illinois state law?
So, just to make sure I understand before I let you go....
When he calculates his montlhy additional income above and beyond his base salary and court-ordered base child support, he may subtract his portion of child care expenses to determine the net of that additional income before calculating the 20% he must pay for additional support each month.
I promise this is the last reply. I just want to make sure we are understanding each other.
How familiar are you with Section 505 of the Illinois Marriage and Disolution Act. It clearly states in his MSA that he pays monthly installments in the amount of 20% of his additional income MINUS the applicable deductions set forth in Section 505.
(3) "Net income" is defined as the total of all income from all sources, minus the following deductions:
(a) Federal income tax (properly calculated withholding or estimated payments);(b) State income tax (properly calculated withholding or estimated payments);(c) Social Security (FICA payments);(d) Mandatory retirement contributions required by law or as a condition of employment;(e) Union dues;(f) Dependent and individual health/hospitalization insurance premiums;(g) Prior obligations of support or maintenance actually paid pursuant to a court order;(h) Expenditures for repayment of debts that represent reasonable and necessary expenses for the production of income, medical expenditures necessary to preserve life or health, reasonable expenditures for the benefit of the child and the other parent, exclusive of gifts. The court shall reduce net income in determining the minimum amount of support to be ordered only for the period that such payments are due and shall enter an order containing provisions for its self-executing modification upon termination of such payment period.