When parents go through a divorce in New York, one of the most pressing concerns is often child support — specifically, how much will be paid and how that number is calculated. At the heart of that calculation is a deceptively simple question: what counts as income? The answer is broader than most people expect, and understanding it can make a significant difference in how child support is determined for your family.
If you are navigating a divorce and have questions about child support, contact us by filling out our online contact form or calling (914) 712-6878 to schedule a free initial consultation.
How New York Calculates Child Support
New York uses a formula established under the Child Support Standards Act (CSSA) to determine how much child support a parent must pay. The CSSA is a state law that sets clear guidelines courts must follow when setting child support obligations. Under this formula, the combined income of both parents is added together, a percentage is applied based on the number of children, and then each parent's share of that obligation is determined based on how much of the total income they each earn.
The percentage applied under the CSSA is 17% for one child, 25% for two children, 29% for three children, 31% for four children, and no less than 35% for five or more children. Before any of that math can happen, though, the court must first determine each parent's gross income — that is, their total income before taxes or other deductions are taken out. This is where things can get more complicated than people anticipate.
What Types of Income Are Included?
New York law takes a very broad view of what qualifies as income for child support purposes. It is not limited to a traditional paycheck. In fact, courts look at nearly every financial resource available to a parent when calculating their income.
Wages and Salary
The most straightforward category is earned income from employment. This includes hourly wages, annual salaries, commissions, and any bonuses received from an employer. Even tips that a worker regularly receives — such as those earned by restaurant servers or hospitality workers — are typically factored in as income.
Self-Employment and Business Income
For parents who are self-employed or who own a business, courts will look at the net income generated from that business — meaning revenue minus ordinary and necessary business expenses. However, courts are careful to scrutinize business deductions that may reduce income on paper but do not reflect the parent's actual financial picture. Certain expenses that a business owner writes off for tax purposes may still be counted as income for child support purposes.
Investment and Passive Income
Money earned from investments and other passive sources is also included. This covers dividends (payments made by companies to shareholders), interest earned on savings or other accounts, and rental income from properties that a parent owns. If a parent receives regular returns from investments, those returns are generally counted.
Other Sources Commonly Counted as Income
New York courts consider a wide range of additional income sources beyond traditional employment. The following are among those commonly included in a child support calculation:
- Social Security benefits, including disability benefits
- Unemployment insurance payments
- Workers' compensation payments
- Veteran's benefits
- Pension and retirement distributions
- Annuity payments
- Lottery winnings and gambling proceeds
- Monetary gifts received on a regular basis
- Inheritances that provide ongoing income
It is important to understand that this list is not exhaustive. Courts have the discretion to consider any financial resource that reflects a parent's ability to contribute to their child's needs. Even if something is not listed above, it could still be counted depending on the circumstances of your case.
Overtime and Second Jobs
If a parent regularly works overtime or holds a second job, that additional income is typically included in the child support calculation. Courts look at the pattern of earnings over time to determine what is consistent and expected. Occasionally, truly one-time earnings may be treated differently, but if extra work is a regular part of a parent's financial life, courts will generally count it.
What Is Not Counted as Income?
While New York's definition of income is broad, there are some sources of funds that are generally excluded from child support calculations. Understanding these exclusions is just as important as knowing what is included.
The following are typically not counted as income for child support purposes:
- Public assistance benefits such as Supplemental Security Income (SSI)
- Food stamps (SNAP benefits)
- Home relief or safety net assistance
- Supplemental nutrition programs
- Certain foster care payments
These exclusions exist because they are considered need-based benefits rather than a reflection of a parent's earning capacity. That said, every case is different, and an attorney can help clarify how these rules apply to your specific situation.
What Happens When a Parent Earns Less Than They Could?
One of the more nuanced areas of child support law involves what happens when a parent is voluntarily earning less than their full potential. For example, if a parent quits a well-paying job, works fewer hours than they could, or turns down available work without a good reason, a court may "impute" income to that parent. Imputing income means the court assigns an income level to the parent based on what they are capable of earning, not what they are currently earning.
Courts consider factors like the parent's education, work history, skills, and the availability of jobs in their field. This prevents a parent from deliberately reducing their income to lower their child support obligation. If you believe the other parent in your case is intentionally earning less than they should be, this is an important issue to raise with your attorney.
Does the Amount of Time Each Parent Spends With the Child Matter?
Custody arrangements — specifically how much time each parent spends with the child — can affect child support, but not in the way many parents assume. In New York, child support is primarily driven by income, not by a precise time-sharing split. Even parents who share custody relatively equally may still have a child support obligation based on the income difference between the two of them.
That said, shared parenting time arrangements can sometimes be a factor the court considers when determining whether a strict application of the CSSA formula would be unjust or inappropriate. This is one of many reasons why having clear legal guidance during a divorce is so valuable.
How Deductions and Adjustments Affect the Calculation
Once gross income is established, certain deductions are applied before the child support formula is calculated. These deductions reduce the income figure used in the calculation and include things like Social Security and Medicare taxes (commonly referred to as FICA taxes), New York City or Yonkers income taxes if applicable, and child support or maintenance paid to other children or former partners under existing court orders.
These adjustments help ensure the final calculation reflects a parent's realistic take-home resources, rather than a figure that would place an unrealistic burden on either party.
Speak With a Mount Kisco Family Law Attorney About Your Child Support Questions
Understanding what counts as income for child support purposes is one of the most important steps you can take when preparing for a divorce in New York. The rules are detailed, the stakes are high, and the financial impact can last for years. Whether you are trying to ensure a fair calculation or you have concerns about how the other parent's income is being reported, having a knowledgeable attorney by your side makes a real difference.
At Riebling & Payton, PLLC, our Mount Kisco family law attorneys are here to help you understand your rights, your obligations, and your options — every step of the way. We take the time to listen, ask the right questions, and work toward an outcome that puts your child's well-being first. To speak with a member of our team, fill out our online contact form or call us at (914) 712-6878 to schedule your free initial consultation today.