What Counts as Income for Indiana Child Support?
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Full bio →This article is for informational purposes only and does not constitute legal advice. Consult a licensed Indiana family law attorney for guidance specific to your case.
Indiana child support is calculated from weekly gross income — a broad definition that includes most recurring and non-recurring income sources. Knowing what is included and what is excluded is essential for accurate calculations. Use the Indiana child support calculator once you have your correct income figure.
Included Income Sources
| Income type | Included? | Notes |
|---|---|---|
| Wages and salary | ✅ Yes | Before taxes and deductions |
| Overtime | ✅ Yes | Recurring overtime is included |
| Tips | ✅ Yes | Reported and unreported tips |
| Commissions | ✅ Yes | Averaged if variable |
| Bonuses | ✅ Yes | Recurring bonuses averaged; one-time may be treated differently by courts |
| Self-employment net income | ✅ Yes | Gross receipts minus ordinary business expenses |
| Rental income | ✅ Yes | Net rental income after mortgage, taxes, maintenance |
| Interest and dividends | ✅ Yes | From investments, savings |
| Royalties | ✅ Yes | From intellectual property, mineral rights |
| Social Security Disability (SSDI) | ✅ Yes | Federal disability payments |
| Social Security Retirement | ✅ Yes | Retirement benefits |
| Unemployment compensation | ✅ Yes | While receiving benefits |
| Workers’ compensation | ✅ Yes | Temporary and permanent disability payments |
| Military pay and allowances | ✅ Yes | Including BAH and BAS |
| Trust distributions | ✅ Yes | Regular distributions from trusts |
| Pension and retirement income | ✅ Yes | Regular distributions |
Excluded Income Sources
| Income type | Excluded? | Reason |
|---|---|---|
| TANF (welfare) | ✅ Excluded | Public assistance |
| Supplemental Security Income (SSI) | ✅ Excluded | Federal law prohibits inclusion |
| Food stamps / SNAP | ✅ Excluded | Public assistance |
| Child support received for other children | ✅ Excluded | Not personal income |
| Income of a new spouse or partner | ✅ Excluded | Third party’s income; courts do not use it |
| Student loans and grants | ✅ Excluded | Not income — temporary with repayment obligation |
Income That Requires Analysis
Some income types require court interpretation:
Sporadic bonuses: If a parent receives a bonus irregularly (e.g., once in the past 3 years), courts may not include it in weekly income. Recurring annual bonuses are typically averaged.
Stock options and RSUs: When vested, these are income in the year received. Courts sometimes average stock compensation or treat it as a lump sum to be credited against the ongoing order.
Inheritance: A one-time inheritance is typically not counted as income for support purposes, but the assets it creates (and any investment income from them) may be included.
Gambling winnings: Recurring gambling income may be included. One-time windfalls are treated inconsistently — courts have discretion.
Imputed income: If a parent is voluntarily underemployed or unemployed, courts may impute income based on earning capacity. This is particularly common when a parent reduces work hours or quits a job around the time of child support proceedings. See Indiana child support for self-employed parents for more on how courts address non-traditional income.
Gross Income vs Net Income
Indiana uses gross income (before taxes, health insurance deductions, retirement contributions, etc.) as the base. This is different from take-home pay. Many parents are surprised their obligation is calculated on pre-tax income rather than what they actually receive.
Example:
| Amount | |
|---|---|
| Annual salary | $65,000 |
| Federal + state taxes | −$14,000 |
| Health insurance (employee share) | −$2,400 |
| 401(k) contribution | −$3,000 |
| Take-home pay | $45,600 |
For child support, the base is the $65,000 gross salary converted to weekly: $65,000 ÷ 52 = $1,250/week gross.
Two Allowed Deductions from Gross Income
Indiana allows only two adjustments before arriving at the Adjusted Weekly Gross Income (AWGI) used in the BSO calculation:
- Court-ordered child support paid for children from prior relationships (not this case)
- Court-ordered spousal maintenance paid
Voluntary payments, informal agreements, and retirement contributions do not reduce the income figure. For the full formula, see Indiana income shares formula explained.
Documenting Income for Court
Courts typically require:
- Pay stubs — most recent 2–4 (all stubs for variable income)
- Tax returns — most recent 1–3 years (Schedules C, E, K-1 for self-employment)
- Bank statements — for cash income or self-employment verification
- Employer verification letter — sometimes requested for base salary confirmation
Enter your documented weekly gross income into the Indiana child support calculator to see an estimated obligation before appearing in court.