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What is net income and why is it important?

net income
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What is net income and why is it important?

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Support Orders are determined from the uniform guidelines by applying “net income” figures to the so called grids. Net income is not necessarily the same as take home pay. Net income is determined by a two-step process. First, at least a six month average of your gross income from all sources is calculated. This includes such things as wages, salaries, commissions, income from a business, interest, rent, retirement benefits, social security, worker’s compensation and unemployment compensation. Second, a limited number of items are deducted from your gross income to arrive at net income. These deductions are federal, state and local income taxes, social security and medicare taxes, non voluntary retirement deductions and union dues. The difference is your net monthly income.

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