This bill amends the definition of "adjusted gross income" in relation to child support guidelines by introducing additional deductions that can be subtracted when calculating an obligor's income. Specifically, it retains the existing deductions for court-ordered support, mandatory retirement contributions, state income taxes, and allowable child care expenses. The bill adds provisions for self-employed obligors, allowing them to deduct fifty percent of their actual self-employment and Medicare taxes paid. Additionally, for employee obligors, the bill introduces a new deduction for amounts withheld for Social Security and Medicare taxes.

The changes to the law include the insertion of new language that specifies these deductions, while also making minor adjustments to existing language, such as changing "50" to "Fifty" and removing the term "tax" from the self-employment tax deduction. The bill is set to take effect on January 1, 2027, ensuring that these new guidelines will be implemented in future child support calculations.

Statutes affected:
Introduced: 458-C:2
HB1225 text: 458-C:2