Q: Question about the categorization of certain income for child support calculation in California.
The Dissomaster Report doesn't include a $10,000 monthly income in its "income" section, even though it's input under "Portion subject to SE tax" in "Royalties, partnerships, S corporations, trusts, etc." When this guaranteed LLC distribution is listed as 'Other Income' in California's child support tool, it results in a different child support calculation. This income, tied to active LLC participation, is subject to self-employment taxes as per IRS guidelines disallowing simultaneous W2 employee and partner status. Please share your opinion on whether this income could be better classified, possibly as self-employment income, for accurate child support calculations. Your insights are invaluable.
A: Child support calculations can vary depending on the jurisdiction and guidelines followed. In California, the Dissomaster Report is commonly used for calculating child support. However, it is important to consult with a family law attorney to determine the accurate categorization of income for child support calculations. If the income in question is tied to active participation in an LLC and subject to self-employment taxes, it could potentially be argued that it should be classified as self-employment income. Consulting with a legal professional familiar with California's child support guidelines is advised for accurate advice
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