How is Income Defined in Pennsylvania Support Cases?
Income for 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 accessed with an earning capacity. Rather than using gross or before tax income, the court uses 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 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 alimony payments paid to the other party. Cal
