How is disposable income calculated?
The disposable income of each parent is calculated by subtracting the basic deduction specified in the Basic Parental Contribution Determination Table, as well as any union and professional dues paid, from the parent’s total annual income. Disposable income is calculated in Part 3 of the Form. 7. How is the basic deduction? The goal of the basic deduction is to allow a parent to meet his or her main needs before being required to pay child support. The basic deduction is equivalent to the work income threshold at which a person living alone who has no severely limited capacity for employment is no longer eligible for social assistance benefits. The amount of the basic deduction is adjusted each year, if necessary. It is indicated at the bottom of page 2 of the Basic Parental Contribution Determination Table. For 2009, the basic deduction has been set at $10,100. 8. What is the basic parental contribution? The disposable income of both parents is added together, and the total is transfe
