In regard to the calculation of child support (State of MD), are self-employment tax and self-employed health insurance costs deductible from earnings, thereby lowering child support payments?
Asked on 8/16/10, 12:57 pm
1 Answer from Attorneys
The answers to your questions are "no" and "not exactly." Child support in Maryland is based on gross, pre-tax income, not net income. Until a couple of years ago, health insurance premiums attributable to the children were deducted from income. The child support guidelines were changed a couple of years ago to provide that the portion of the premium attributable to the children is divided between the parents in proportion to income. That is a much better result for the person who maintains the insurance than simply deducting the premium from income.
Answered on 8/22/10, 7:55 am
