How is Income Defined in PA Support Cases?
Income for Pennsylvania support purposes includes such things as wages, salaries, overtime pay, commissions, bonuses, interest, rental income, retirement income, Social Security retirement or disability payments, workers compensation, unemployment compensation, income from an interest in a business, entitlements to lump sum awards such as lottery winnings and any other sources of income. If a person does not have any income, but is capable of working, the parent may be assessed with an earning capacity. Rather than using gross or before tax income, the Pennsylvania courts use the monthly net, or after tax, incomes of each parent. Net income for support purposes is oftentimes different than the amount of money received in a parent’s paycheck or what is listed on the parent’s tax returns. For Pennsylvania support purposes, net income is defined as gross income minus actual federal, state, and local income taxes, union dues, non-voluntary retirement payments, F.I.C.A. payments, and alimon
