Current through February 27, 2024
(a) For purposes of
15 AAC 125.020, total income from
all sources is the expected actual annual income that the parent will earn or
receive when the child support award is to be paid. The expected actual annual
income consists of
(1) salaries and wages,
including overtime and tips;
(2)
commissions;
(3) severance pay paid
over an extended period of time;
(4) royalties;
(5) bonuses and profit sharing;
(6) interest and dividends, including
permanent fund dividends;
(7)
income derived from self-employment and from business partnerships;
(8) social security benefits;
(9) veterans benefits, except those that are
means-based;
(10) insurance
benefits in place of earned income, such as workers' compensation or periodic
disability payments;
(11) workers'
compensation;
(12) unemployment
compensation;
(13)
pensions;
(14) annuities;
(15) income from trusts;
(16) capital gains in real and personal
property transactions to the extent that they represent a regular source of
income;
(17) spousal support
received from a person not a party to the order;
(18) income from contractual
agreements;
(19) prerequisites or
in-kind compensation, such as employer provided housing and transportation
benefits, to the extent that they are significant and reduce living
expenses;
(20) income from life
insurance or endowment contracts;
(21) income from interest in an estate,
whether received directly or through a trust;
(22) lottery or gambling winnings received
either in a lump sum or an annuity;
(23) prizes and awards;
(24) net rental income;
(25) G.I. benefits, excluding education
allotments;
(26) National Guard and
Reserves drill pay; and
(27) Armed
Service Members base pay plus the parent's allowances for quarters, rations,
cost of living allowance, and specialty pay.
(b) Except as provided in (e) of this
section, the expected actual annual income that a parent will earn or receive
does not include
(1) a lump sum withdrawal
from a pension or profit sharing plan, to the extent the proceeds have already
been treated as a portion of total income for the purpose of calculating a
child support award under Alaska Rule of Civil Procedure 90.3;
(2) means-based sources of income such as
Alaska Temporary Assistance Program (ATAP), Food Stamps, and Supplemental
Security Income; however, Children's Insurance Benefits paid to the parent's
dependents is considered income; or
(3) one time gifts and inheritances, but
interest from the principal amount is considered income and the agency may
consider the amount of the principal as income in determining whether unusual
circumstances exist as provided in
15 AAC 125.075.
(4) tax deferred dividends and interest
(A) earned on pension or retirement accounts,
including individual retirement accounts under
26 U.S.C.
408 -
408 A (Internal Revenue Code;
and
(B) not distributed to the
parent; or
(5) child
support payments received from another individual.
(c) For the purposes of determining the total
income of a parent, income from self-employment, rent, royalties, or an
ownership interest in a partnership or closely held corporation includes the
gross receipts minus the ordinary and necessary expenses required to produce
the income. Ordinary and necessary expenses do not include any accelerated
component of depreciation, investment tax credit, or any other business expense
determined by the agency to be inappropriate. The agency will include an
expense reimbursement and an in-kind payment, such as use of a company car,
free housing, or reimbursed meals, as income if the amount is significant and
reduces living expenses. The agency will offset expenses against the gross
receipts from the business in which the expenses were generated, but the agency
may not offset the expenses incurred in one business against income from
another source such as wages or rents.
(d) If the parent has experienced a wide
variation in total income from year to year, the agency may average income over
more than one year to determine the parent's expected actual annual income.
Except in unusual circumstances, the agency will not average more than the last
three years of income.
(e) For
purposes of
15 AAC 125.020, when the agency is
calculating arrears under
15 AAC 125.105, total income from
all sources is the actual annual income that the parent earned or received in
each calendar year for which arrears are sought to be established in each
category listed under (a) of this section. When the agency calculates arrears
under 15 AAC 125.105, total income from
all sources
(1) includes one time or lump sum
payments, including one time gifts and inheritances that would otherwise be
excluded from income under (b)(3) of this section; and
(2) does not include payments that are
excluded from income under (b)(1), (b)(2), (b)(4), or (b)(5) of this
section.
Authority:AS
25.27.020
AS 25.27.140
AS 25.27.160
AS 25.27.170
AS
25.27.200
