Is a tax refund yearly income that should be considered in determining child support?

Well, in this particular case, the Third Appellate District determined that it was not: In re Marriage of Eastburg, 2016 IL App (3d) 150710.

 

The Petitioner, mother of the children and residential parent with majority parenting time filed a petition in October 2014 to modify child support based on the Respondent’s (father’s) current income. The parties agreed to increase child support to match 28% of the husband’s 2014 income and stipulated to this in court. During discovery, the Petitioner learned of the Respondent’s $14,239.00 tax refund that she received no share of.  The trial court denied Petitioner’s request for 28% of the refund and noted that the parties had already agreed to an increase in child support and the over withholding of income by the husband “did not affect the current support computation.”

 

The Appellate Court determined that the parties were at fault for stipulated to the child support obligation in open court and not considering the tax refund at this time.  The Court noted that there was no fraud in stipulating the payment amount because the Petitioner knew of the tax refund at that time.

 

The court determined the husband’s 2014 tax refund was part of his net income for that year.  However, the court held a payor’s income tax return is not always income for child support purposes.  Even though the husband was intentionally withholding income from his paycheck, the court compared the receipt of his refund to withdrawing it from a zero interest savings amount.

 

This case is a good reminder for parties to thoroughly review each other’s financial discovery and arguing any questionable income not accounted for, such as a tax refund, before stipulating to the payment amount.

You May Also Like

  • Download our Divorce Planning Guide today!
  • Download our Divorce Planning Guide today!

    Get the information you need to prepare for divorce with our free resource Guide to Planning for Your Divorce.

    click to download now!

What Our clients are saying

Excellent - I highly recommend Kimberly Anderson. She is knowledgeable, assertive, and experienced. What impressed me most about Kim is her dedication. I was able to reach her whenever there was a problem. She always responded immediately, proposed a solution, and put me at ease. The entire legal team at Anderson & Boback is superb.

Lisa March 29, 2018

  • Why Choose Anderson & Boback ?

  • ASLA Badge - Kimberly Anderson 2018
    BBB A+ Badge
    lawyers of distinction badge
    lawyers of distinction badge
    AVVO 10 Rating badge - generic
    Super Lawyers Generic badge

Schedule a Discreet Consultation Today!



  • firm overview Anderson & Boback

  • Anderson & Boback is a highly-respected, experienced Chicago family law firm, skilled in negotiation and litigation. When divorce and other family law issues make your life chaotic and uncertain, you want your case resolved as quickly and fairly as possible. Call Now 312-715-0870