Legal Question in Family Law in California

I have a question about child support payments. I have a hearing coming up where I have to provide all kinds of crazy documents to verify my income and my expenses. On my W2 it shows I made 66 thousand this year gross. However 9 thousand of that was in quarterly bonuses and taxed at a higher tax rate than my salary so I saw significantly less than that 9grand. The difference is without the bonuses I only gross 4200 a month, when I take the bonus money and divide by 12 I gross 5500...is there any way I can show that and have it make sense? Or something I can do to show I don't actually make that 5500 a month?


Asked on 1/19/12, 10:00 am

3 Answers from Attorneys

Arlene Kock Law Offices of Arlene D. Kock APLC

If you do not anticipate future bonuses, you can argue that the court should only use your base pay to calculate support. Bonus money can be used as a basis for calculating support.

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Answered on 1/19/12, 11:33 am

Bonus payments are one of the trickiest areas of child support law. Your concern seems to be mainly about the tax treatment, though, which is pretty simple. Although your bonuses are hit with a high tax WITHHOLDING rate, they are not actually taxed any different in the end than any other employment income. When you file your tax return after the end of the year, you are taxed on the total income at the appropriate rate. The bonuses are lumped into your income - not taxed any higher - when the final taxes due are calculated and the IRS decides if you have to pay or get a refund. Most people who have bonuses that are withheld at the higher rate then get a refund, unless their other income is withheld at too low a rate. The DissoMaster program knows this and figures your after-tax income based on your actual tax rate for all income earned. The bigger issue, however, is the one Ms. Kock mentions - are you likely, unlikely, certain or what to get these bonuses in the future. If the bonuses are uncertain in award or amount, there are legal principals and structured orders available to assure you only pay support for bonuses you receive, not projected bonuses that never materialize. You should consult with a local Family Law attorney about that.

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Answered on 1/19/12, 1:39 pm


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